Prima facie case for complete pre-deposit waiver rejected where valuation and extended-period issues needed detailed factual examination.

In a pre-deposit application concerning valuation of intermediate soap noodles and the extended period, CEGAT held that the record did not establish a strong prima facie case for complete waiver of duty and penalty. The Tribunal found that the dispute required detailed examination of the facts, documents and case law, and that revenue neutrality and the challenge to the show cause notices were insufficient to dispense with pre-deposit entirely at that stage. Complete waiver was declined, and the applicants were directed to deposit Rs. 5 lakhs, with waiver granted only for the balance duty and penalty on such deposit.

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Issues: Whether the applicants had made out a strong prima facie case for complete waiver of pre-deposit of duty and penalty.

Analysis: The dispute related to valuation of intermediate soap noodles and the applicability of the extended period, but at the present stage the Tribunal found that the issue required detailed examination of the facts, documents and case law. The material placed before it did not establish a strong prima facie case for total waiver. The contention of revenue neutrality and the challenge to the show cause notices were not found sufficient to dispense with pre-deposit entirely at this stage.

Conclusion: Complete waiver of pre-deposit was declined and the applicants were directed to deposit Rs. 5 lakhs, with waiver granted only for the balance duty and penalty on such deposit.

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