Section 11D under Central Excise law applies prima facie only to persons liable to pay duty, with full pre-deposit waiver granted.

Section 11D of the Central Excise Act was treated as prima facie applicable to persons liable to pay duty who collect amounts in excess of duty assessed or paid, so a person not otherwise liable to pay duty was considered outside its scope. On that basis, the demand under Section 11D against a small-scale exemption claimant was not shown to be sustainable at the pre-deposit stage, and full waiver of pre-deposit was granted with the appeal admitted for hearing.

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Issues: Whether demand under Section 11D of the Central Excise Act, 1944 could be sustained against a person availing small-scale exemption and not otherwise liable to pay duty, and whether full waiver of pre-deposit was warranted.

Analysis: Section 11D was treated as applying prima facie to a person liable to pay duty under the Act and Rules who collects amounts in excess of the duty assessed or determined and paid. On that basis, a person not liable to pay any duty was held prima facie to be outside the ambit of that provision.

Outcome: The appeal was admitted and full waiver of pre-deposit was granted; the matter was listed for hearing.

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