Pre-deposit waiver in duty demand matters may be limited where tariff coverage is prima facie clear and hardship is unproven.

Spent compost waste removed by a 100% export oriented unit was prima facie treated as falling under Heading 31.01, and the duty demand was not meaningfully disputed on quantification. The plea for financial hardship was unsupported by evidence, so full waiver of pre-deposit was declined. However, the tribunal took a lenient approach at the stay stage and restricted the pre-deposit requirement to a reduced amount before hearing the appeal.

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Issues: Whether the appellant was entitled to waiver of the full pre-deposit in a duty demand matter.

Analysis: The demand arose from removal of spent compost waste by a 100% export oriented unit. On a prima facie examination of the tariff, the goods appeared to be covered by Heading 31.01. The appellant did not dispute the duty quantification with any real objection, and the plea of financial hardship was not supported by evidence. At the same time, the circumstances justified a lenient approach in fixing the amount to be deposited at the stage of hearing the stay request.

Conclusion: Full waiver was declined, but the appellant was directed to pre-deposit only Rs. 2,50,000 within four weeks.

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