Pre-deposit waiver for duty and penalty allowed where existing deposit was found sufficient on the facts.

Waiver of the remaining pre-deposit of duty and penalty was granted for hearing the appeal because the amount already deposited was considered sufficient on the facts. The dispute concerned clearances by a 100% Export Oriented Unit into the Domestic Tariff Area, with the applicant relying on the valuation framework under Section 3 of the Central Excise Act, 1944, Customs valuation principles for imported goods, comparable import prices, a Board circular, and financial hardship arising from closure of the unit. On that material, the Tribunal treated the existing deposit as adequate for admission of the appeal.

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Issues: Whether waiver of pre-deposit of the demanded duty and penalty was justified on the facts of the case.

Analysis: The application concerned duty and penalty arising from clearances by a 100% Export Oriented Unit into the Domestic Tariff Area. The applicant relied on the valuation framework under Section 3 of the Central Excise Act, 1944 and the Customs valuation principles for imported goods, and also pointed to comparable import prices, the Board Circular, and financial hardship due to closure of the unit. On the facts placed before it, the amount already deposited was considered sufficient for the purpose of hearing the appeal.

Conclusion: The remaining duty and penalty were waived for the purpose of hearing the appeal.

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