Pre-deposit waiver and exemption under excise notification granted pending Larger Bench review of State Electricity Board coverage.

A prima facie case supported by existing precedent justified full waiver of the pre-deposit pending disposal of the appeal, even though the Tribunal doubted the earlier view on exemption. The dispute concerned whether goods manufactured for a State Electricity Board fell within Notification No. 74/93-C.E.; the Tribunal expressed a prima facie view that State Electricity Boards are not departments of the Government, but it still granted interim relief. The exemption issue was referred to a Larger Bench for reconsideration.

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Issues: Whether the appellant was entitled to waiver of the pre-deposit required for maintaining the appeal, and whether the dispute concerning exemption under the notification warranted reference to a Larger Bench.

Analysis: The appeal involved a demand of central excise duty, education cess, and penalties, with pre-deposit sought under the appellate provision of the Central Excise Act. The appellant claimed exemption under Notification No. 74/93-C.E. on the footing that goods manufactured for a State Electricity Board were covered by the notification. The Tribunal expressed a prima facie view that State Electricity Boards are not departments of the Government, but, in light of the earlier decision relied upon, found it appropriate to grant interim relief while doubting the correctness of that earlier view and referring the exemption question to a Larger Bench.

Conclusion: Full waiver of pre-deposit was granted till disposal of the appeal, and the exemption issue was referred to a Larger Bench for consideration.

Ratio Decidendi: Where the appellant establishes a prima facie case supported by existing precedent, pre-deposit may be waived pending final determination, even if the underlying legal question is referred for reconsideration by a Larger Bench.

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