Pre-deposit waiver in excise depends on prima facie case and pending remission, with only partial relief granted.

Where remission of duty on sugar bags allegedly destroyed in fire remained undecided, the assessee could not delete the goods from the RG-1 register and therefore failed to establish a strong prima facie case for complete waiver of pre-deposit of central excise duty and penalty. The tribunal treated the pending remission proceedings and the applicant's financial position as relevant only for interim relief, not for full dispensation. Complete waiver was declined; partial waiver was granted on deposit of Rs. 5 lakhs, with the balance duty and entire penalty stayed pending disposal of the appeal.

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Issues: Whether the applicant made out a strong prima facie case for complete waiver of pre-deposit of central excise duty and penalty in a case where sugar bags were claimed to have been destroyed in fire and remission proceedings were still pending.

Analysis: The application for remission of duty had not yet been decided by the proper authority. Until such decision, the applicant had no authority to delete the goods said to have been destroyed from the RG-I register. In these circumstances, the applicant failed to establish a strong prima facie case for complete waiver. The financial position of the applicant was, however, relevant for moulding interim relief.

Conclusion: Complete waiver was declined. The applicant was directed to deposit Rs. 5 lakhs, and waiver was granted for the remaining duty amount as well as the entire penalty, with recovery stayed pending disposal of the appeal.

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