Pre-deposit waiver in drawback dispute was restricted where duty-paid inputs were not shown and financial hardship was only partly accepted.

A claim for total waiver of pre-deposit was rejected because the record showed no evidence that the inputs used in manufacture had suffered Central Excise duty, creating a prima facie case against complete relief under the drawback framework. The Tribunal nonetheless considered financial hardship and balanced revenue interests, and directed deposit of 50% of the confirmed amount within six weeks. On such deposit, the balance pre-deposit was waived and recovery of the remainder stayed pending appeal.

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Issues: Whether the appellant was entitled to total waiver of pre-deposit of the drawback amount and penalty.

Analysis: The exported goods were claimed to be eligible for drawback, but the record disclosed a finding that the raw material used for manufacture had not suffered Central Excise duty. No evidence was produced before the lower authorities, or before the Tribunal, to show that the inputs were duty-paid. In view of the drawback framework, this created a prima facie case against complete waiver. At the same time, the appellant's plea of financial hardship was taken into account while balancing the interests of revenue.

Conclusion: Total waiver was declined. The appellant was directed to deposit 50% of the confirmed amount within six weeks, and on such deposit the balance pre-deposit was waived and recovery of the remainder was stayed during pendency of the appeal.

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