Pre-deposit waiver and remand to Commissioner (Appeals) for merits hearing after directing a reduced deposit.

Where the Commissioner (Appeals) had not decided the matter on merits, CESTAT waived the balance pre-deposit, directed a reduced deposit, and remanded the appeal for fresh adjudication after granting an opportunity of hearing. The operative effect was that further insistence on dues was dispensed with for the remand proceedings, while the appeal was restored to the Commissioner (Appeals) for decision on merits.

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Issues: Whether the appeal should be remanded to the Commissioner (Appeals) for decision on merits after partial pre-deposit.

Analysis: The matter was not decided by the Commissioner (Appeals) on merits. The appeal was therefore taken up for disposal at the stay stage, the requirement of balance pre-deposit was waived, and a reduced deposit was directed before the Commissioner (Appeals) with an opportunity of hearing.

Outcome: The case was remanded to the Commissioner (Appeals) for decision on merits without insisting on further deposit of dues, after directing deposit of Rs. 2 lakhs.

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