Waiver of pre-deposit granted where rural area status was supported by verified local certification and partial deposit was already made.

Notification No. 8/03-C.E. did not require rural area status to be only by the Tehsildar or Sub-Divisional Magistrate; a Sarpanch certificate, when verified by the jurisdictional Assistant Commissioner, was treated as sufficient support for the factory location claim. Since the applicants had already deposited the full duty and 25% of the duty penalty as directed by the original authority, the record supported interim relief. On that basis, the balance of duty and penalties was waived pending disposal of the appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit of duty and penalties pending appeal.

Analysis: The Notification No. 8/03-C.E. dated 1-3-03 contained no condition that a certificate of rural area status must necessarily be issued by the Tehsildar or Sub-Divisional Magistrate. The factory location was supported by a certificate from the Sarpanch, which had also been forwarded to and verified by the jurisdictional Assistant Commissioner. The applicants had already deposited the entire duty and 25% of the duty penalty as ordered by the original authority, which supported grant of interim relief.

Conclusion: The applicants were entitled to total waiver of the balance amount of duty and penalties pending disposal of the appeal.

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