Pre-deposit of duty demand required where collected excise duty was prima facie payable to the Government treasury.

At the interim stage, the tribunal required pre-deposit of the confirmed duty demand while waiving the balance pending appeal. It applied the statutory pre-deposit requirement under Section 35F of the Central Excise Act, 1944, noting a prima facie view that any excise duty collected was required to be deposited in the Government treasury under Section 11D. As the merits and penalty issues were to be decided finally, complete waiver was refused. Recovery was stayed only on compliance with the directed deposit of the duty amount.

---

---

Issues: Whether, at the interim stage, pre-deposit of the confirmed duty demand should be ordered and further pre-deposit waived pending appeal.

Analysis: The order records a prima facie view that any amount collected as excise duty was required to be deposited in the Government treasury under Section 11D of the Central Excise Act, 1944. Since the dispute also involved penalty and the merits were to be decided finally, the statutory requirement of pre-deposit under Section 35F of the Central Excise Act, 1944 was applied by directing deposit of the duty amount and granting waiver of the balance pre-deposit. Recovery was stayed upon compliance with the directed deposit.

Conclusion: The application for complete waiver was rejected, and pre-deposit of the duty amount was ordered with stay of recovery subject to compliance.

---