Pre-deposit waiver in excise dispute refused where clandestine removal was alleged and financial hardship alone was insufficient.

Complete waiver of pre-deposit was refused in the appeal against duty demands, penalties and personal penalty because the appellants did not establish a prima facie case; the Tribunal noted allegations of clandestine production and removal without duty payment. Financial hardship and bank takeover of assets were held insufficient, by themselves, to justify full waiver of the disputed duty and penalties. The Tribunal therefore directed partial pre-deposit and stayed recovery of the balance subject to compliance.

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Issues: Whether complete waiver of pre-deposit and stay of recovery were warranted in the appeal against demands, penalties and personal penalty.

Analysis: The appeal was sought to be adjourned repeatedly, and the request for full waiver was founded on financial difficulty and takeover of assets by the bank. The Tribunal held that the appellants had not shown a prima facie case for complete waiver, as the impugned order indicated clandestine production and removal of goods without payment of duty. Financial hardship by itself was held insufficient to justify full waiver of the disputed duty and penalties. Taking the overall circumstances into account, the Tribunal fixed partial pre-deposit requirements and stayed recovery of the balance pending compliance.

Conclusion: Full waiver was rejected. The main appellant was required to pre-deposit Rs. 50 lakhs and the Managing Director Rs. 1 lakh, with the balance of duty and penalties stayed on compliance.

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