Pre-deposit waiver denied where exemption claim failed in prior proceedings and financial hardship did not justify interim relief.

Waiver of the balance pre-deposit was refused where the assessee's exemption claim under Notification No. 8/97-C.E. had already been rejected in its own case, with that view upheld by the High Court and left undisturbed by the Supreme Court. The Tribunal treated the imported dye used in manufacture for domestic tariff area clearance as raw material, so the finished goods could not be regarded as produced wholly from indigenous raw material. It also held that alleged financial hardship did not justify interim relief in a public revenue matter on the facts shown, and directed deposit of the remaining duty demand.

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Issues: Whether waiver of pre-deposit of the remaining duty demand was justified when the exemption claim under Notification No. 8/97-C.E. stood consistently negated in the assessee's own case and the plea of financial hardship was raised.

Analysis: The Tribunal noted that the exemption dispute had already been decided against the assessee in its own case, that the High Court had upheld that view, and that the Supreme Court had dismissed the related civil appeal. The assessee was importing dye and using it in the manufacture of goods cleared in the domestic tariff area, and the earlier findings treated such imported dye as raw material so that the finished product could not be said to be produced wholly from indigenous raw material. On the plea of hardship, the Tribunal also relied on the Revenue's financial figures and the principle that interim relief in matters of public revenue requires more than a prima facie case.

Conclusion: Waiver of the balance pre-deposit was declined and the assessee was directed to deposit the remaining duty amount.

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