Additional duty of excise follows basic excise duty, and full exemption can support complete waiver of pre-deposit.

Additional duty of excise under the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 is computed as a percentage of the basic excise duty chargeable on the specified goods. Where the goods, described as cotton yarn in cross reel hanks, are fully exempt from basic excise duty and the assessed basic duty is nil, the corresponding additional duty is also nil. On that basis, the appellant was treated as having a prima facie case for complete waiver of the pre-deposit requirement pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit in respect of the demand of additional duty of excise on the goods in question.

Analysis: The levy under Section 3(1) of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978 is computed at 15% of the duty of excise chargeable on the specified goods. The goods in question were stated to be cotton yarn in cross reel hanks and were exempt from basic excise duty. If the basic excise duty assessed on the goods is nil because of total exemption, the corresponding additional duty would also be nil. On that basis, the appellant was held to have established a prima facie case for complete waiver of the pre-deposit requirement during the pendency of the appeal.

Conclusion: The requirement of pre-deposit was waived in favour of the appellant.

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