CT-3 clearance violations treated as substantive, and complete waiver of pre-deposit was refused for lack of hardship.

Clearance of excisable goods beyond the quantity covered by CT-3 certificates, and without production of CT-3 certificates, was treated as a substantive violation rather than a mere procedural lapse. The Tribunal held that the appellants had not shown a sufficiently strong prima facie case or financial hardship to justify complete waiver of pre-deposit. It therefore directed a pre-deposit of Rs. 50 lakhs within three months, and ordered that on such deposit the balance duty and penalty would stand waived and recovery stayed.

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Issues: Whether, in the facts of the case, the appellants had made out a sufficient prima facie case and financial hardship to justify complete waiver of pre-deposit, and whether the alleged clearance of excisable goods beyond the CT-3 certificate limit constituted a substantive violation.

Analysis: The appellants had cleared relays in excess of the quantity covered by the CT-3 certificates and also effected clearances without production of CT-3 certificates. The Tribunal distinguished authorities dealing with mere procedural lapses and applied the view that non-production of CT-3 in such circumstances was a substantive violation. In the absence of a strong prima facie case and financial hardship, complete waiver was not warranted.

Conclusion: The appellants were directed to pre-deposit Rs. 50 lakhs within three months, and on such deposit the balance duty and penalty were waived and recovery stayed.

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