Export exemption under duty-free notification failed to justify full pre-deposit waiver where proof of export was absent.

Notification No. 125/84-C.E. exempts goods produced in a 100% export-oriented undertaking, but duty becomes payable if any part of the goods is permitted to be sold in India. Where goods were cleared without duty for export and no proof of export was produced, the claim that no sale in India was allowed did not establish a prima facie case for complete waiver of pre-deposit. The request for remand was also rejected because it would only delay final adjudication. Complete waiver and remand were refused, and the appellants were directed to deposit 50% of the duty in each appeal, with waiver of the balance on compliance.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit and remand, in view of their claim to exemption under Notification No. 125/84-C.E. dated 26-5-1984.

Analysis: The notification grants excise-duty exemption to goods produced in a 100% export oriented undertaking, but the exemption is subject to the proviso that duty becomes payable if any part of the goods is allowed to be sold in India. The appellants had cleared the goods without payment of duty for export, but had not produced proof of export. On the material before it, the claim for exemption on the footing that the goods were not allowed to be sold in India did not make out a prima facie case for complete waiver. The request for remand was also declined, as it would only delay final adjudication.

Conclusion: Complete waiver of pre-deposit and remand were refused. The appellants were directed to deposit 50% of the duty in each appeal, with waiver of the balance during the pendency of the appeal on compliance.

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