Pre-deposit waiver for excise duty can be replaced by a general bond where solvency and prima facie case are established.

The Bombay HC modified the Tribunal's pre-deposit condition, holding that the duty deposit requirement could be replaced by execution of a general bond for the full duty amount. The Court noted that Board instructions in the Excise Manual required due consideration, that the petitioner was a Government of India undertaking with unquestioned solvency, and that a prima facie case for complete waiver had been made out. On those facts, the Court found that the ends of justice would be met by dispensing with the monetary pre-deposit and substituting a general bond, granting partial relief to the petitioner.

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Issues: Whether the Tribunal's direction requiring pre-deposit of the entire duty amount, with dispensation of penalty deposit only on compliance, should be modified and whether a general bond would suffice in place of monetary pre-deposit.

Analysis: The petition challenged the pre-deposit condition imposed by the Tribunal. The Court noted the earlier decision in an identical matter, where it was held that the Board's instructions in the Excise Manual required due consideration, that the petitioner was a Government of India undertaking with solvency beyond doubt, and that a prima facie case for complete waiver had been made out. In those circumstances, the Court considered that the ends of justice would be served by substituting the monetary pre-deposit with execution of a general bond for the full duty amount.

Conclusion: The direction of pre-deposit of the duty amount was modified and substituted by a requirement to execute a general bond for the full amount of duty, resulting in partial relief to the petitioner.

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