Pre-deposit waiver in excise dispute partly allowed after prima facie assessment of exemption and duty liability.

Prima facie consideration of a pre-deposit request under Section 35F of the Central Excise Act led to partial relief, as the Tribunal noted that the exemption and duty-liability dispute had already been addressed in an earlier order and that a substantial part of the demand appeared relatable to credit on single yarn. Complete waiver was therefore refused, but the pre-deposit requirement was reduced to a limited amount. On compliance with the directed deposit, the balance deposit obligation was waived and recovery was stayed.

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Issues: Whether the appellant had made out a case for waiver of the pre-deposit of duty and penalty and for stay of recovery pending disposal of the appeal.

Analysis: The application under Section 35F of the Central Excise Act, 1944 was considered on a prima facie basis. The Tribunal noted that the dispute on exemption and duty liability had already been dealt with in an earlier order and that a substantial part of the demand appeared to be credit relatable to single yarn. On that basis, complete waiver was not granted, but the amount to be deposited was reduced to a limited sum.

Conclusion: Partial waiver of pre-deposit was granted. The appellant was directed to deposit Rs. 1,00,000, and upon compliance, further deposit was waived and recovery was stayed.

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