Pre-deposit waiver in compounded levy dispute limited where furnace capacity change and financial hardship were not fully established.

For duty demand under the compounded levy scheme, the Tribunal refused full waiver of pre-deposit because the alleged reduction in furnace capacity was not properly intimated and the effective date of the change could not be established on the record. The appellants' plea of financial hardship was noted, including that the unit had become defunct and sick, but the company's economic position on the relevant date was not shown sufficiently to justify complete waiver. Partial relief was granted by directing pre-deposit of 25% of the duty demanded.

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Issues: Whether the appellants were entitled to full waiver of pre-deposit and stay of recovery in respect of the duty demand raised under the compounded levy scheme.

Analysis: The unit's claim that the furnace capacity had reduced was not accepted for the purpose of treating the installed capacity as 3 MT during the dispute period, because the alleged reduction had not been intimated in the manner required and the effective date of the change could not be determined on the material before the Tribunal. At the same time, the appellants' financial hardship and the fact that the unit had become defunct and sick were taken into account, though the record did not show the company's economic position as on the relevant date for complete waiver.

Conclusion: Full waiver of pre-deposit was declined, but partial relief was granted by directing deposit of 25% of the duty demanded.

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