Pre-deposit waiver in excise appeals limited where clandestine removal is prima facie shown and hardship is insufficient.

At the pre-deposit stage in an excise appeal, CESTAT found a prima facie case of clandestine production and removal without duty payment, so full waiver was refused. The appellants' plea of financial hardship was held insufficient to justify complete dispensation, but the surrounding facts warranted partial relief. A reduced pre-deposit was directed from the company and its Managing Director, and the balance of duty and penalties remained stayed pending disposal of the appeals.

---

---

Issues: Whether the appellants were entitled to full waiver of pre-deposit of duty and penalties in the appeal proceedings.

Analysis: The appeal was considered at the stage of pre-deposit under the excise law. The record indicated a prima facie case of clandestine production and removal of goods without payment of duty, and the financial hardship pleaded by the appellants was held insufficient to justify complete waiver. At the same time, the overall facts and circumstances warranted partial relief by requiring a reduced pre-deposit from the company and its Managing Director, with the balance of duty and penalties stayed pending disposal of the appeals.

Conclusion: Full waiver of pre-deposit was rejected, but partial waiver was granted on condition of deposit of specified sums by the appellants.

---