Pre-deposit condition in excise appeal found unsustainable where assessment lacked notice and hearing; matter remitted on merits.

Insistence on pre-deposit as a condition for hearing an excise appeal was found unsustainable where the assessment order was alleged to have been passed without notice or opportunity, because the absence of notice and hearing was treated as a material infirmity. The appellant's status as a sick industry also weighed against imposing the duty amount as a pre-condition. The orders requiring pre-deposit were set aside and the matter was remitted for hearing on merits before the Assistant Commissioner of Central Excise.

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Issues: Whether the demand of pre-deposit as a condition for hearing the appeal could be sustained where the assessment order was alleged to have been passed without notice or opportunity, and whether the matter should be remitted for decision on merits.

Analysis: The absence of notice and opportunity before the assessment order was treated as a material infirmity. In addition, the appellant's status as a sick industry was taken into account. On these facts, insistence on payment of the duty determined as a pre-condition for hearing the appeal was found unsustainable.

Conclusion: The orders imposing the pre-deposit condition were set aside and the matter was remitted to the Assistant Commissioner of Central Excise for hearing on merits.

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