Pre-deposit relief in excise appeal: onerous deposit condition modified after financial hardship was not properly considered.

Pre-deposit for hearing an excise appeal under Section 35F was reduced because the Court found the original requirement to deposit the entire service tax amount unduly onerous and insufficiently responsive to the petitioner's financial hardship. On the material before it, the Court held that hardship had not been duly considered when fixing the condition. The pre-deposit was therefore modified to 30% of the service tax amount, and the appeal was directed to be heard and decided on merits after compliance.

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Issues: Whether the pre-deposit condition imposed for hearing the appeal under Section 35F of the Central Excise Act, 1944 required modification in view of the petitioner's financial hardship.

Analysis: The order directing deposit of the entire service tax amount as a pre-condition for hearing the appeal was found to be onerous. The material placed before the Court, together with the submissions of both sides, showed that the petitioner's plea of financial hardship had not been duly considered while fixing the pre-deposit.

Conclusion: The pre-deposit condition was modified to 30% of the service tax amount, and upon such compliance the appeal was to be heard and decided on merits in accordance with law.

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