SSI exemption clubbing dispute: Tribunal declined total waiver, ordered partial pre-deposit, and granted stay on compliance.

Interpretation of condition (vi) in the SSI exemption notification on clubbing of clearances was central to the interim relief request. The Tribunal noted that the same machinery was used in adjoining portions of the premises during different parts of the financial year and treated the premises as a single factory for the relevant period. It found no strong prima facie case for total waiver of pre-deposit, while also considering the appellant's financial hardship and overall financial position in balancing interim relief. The appellant was directed to pre-deposit Rs. 2 lakhs within eight weeks, and on compliance, waiver of pre-deposit and stay of recovery were granted for the penalties and the balance duty demand.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending appeal in a dispute concerning clubbing of clearances under the SSI exemption notification.

Analysis: The assessee and the Revenue disputed the construction of condition (vi) of the SSI notification governing clearances by one or more manufacturers from a factory. On the facts noted, the same machinery was used in adjoining portions of the premises during different parts of the financial year, and the entire premises was treated as a factory for the relevant period. The Tribunal found no strong prima facie case for total waiver. Financial hardship and the appellant's financial position were taken into account while balancing the request for interim relief.

Conclusion: The appellant was directed to pre-deposit Rs. 2 lakhs within eight weeks. On compliance, waiver of pre-deposit and stay of recovery were granted for the penalties and the balance duty demand.

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