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Issues: Whether the appellant was required to make pre-deposit of the duty and penalty demands arising from the classification of 6-gram chewing tobacco pouches under Section 4A of the Central Excise Act, or whether a prima facie case justified waiver.
Analysis: The disputed goods were small pouches containing less than 20 grams of chewing tobacco. The competent authority under the Standards of Weights and Measures law had clarified that packages of 20 grams or less did not require declaration of maximum retail price. Rule 34B of the packaged commodities rules was also noticed as exempting such small packages from MRP declaration. The Revenue's assertion that the group package was meant for retail sale was found unsupported by evidence. In these circumstances, the appellant's contention that the goods were not liable to be assessed under Section 4A at the stay stage disclosed a strong prima facie case.
Conclusion: Pre-deposit of the entire duty and penalty was waived and the stay application was allowed in favour of the appellant.
Final Conclusion: The order granted interim relief by suspending the pre-deposit requirement on the footing that the appellant had established a strong prima facie case against assessment under Section 4A.
Ratio Decidendi: Where small packaged goods are shown, on available clarification and regulatory exemption, not to require MRP declaration, and the Revenue produces no evidence that the group package is intended for retail sale, waiver of pre-deposit is justified on a strong prima facie case.
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