Pre-deposit waiver limited where prima facie manufacture claim fails, but exemption and hardship support partial stay.

Complete waiver of pre-deposit was refused because the appellant's prima facie case on manufacture was not accepted, though the Tribunal noted possible availability of the exemption notification, prior Tribunal precedent, the amount already deposited, and financial hardship. The appellant was directed to deposit Rs. 2,00,000 within six weeks; on compliance, the balance pre-deposit was waived and recovery stayed until disposal of the appeal.

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

Analysis: The appellant's plea that the activity amounted to manufacture was not accepted prima facie. However, the Tribunal considered that the benefit of the exemption notification cited by the appellant could be available in view of the earlier Tribunal decision relied upon, and also took into account the amount already deposited and the plea of financial hardship.

Conclusion: Complete waiver was declined. The appellant was directed to deposit Rs. 2,00,000 within six weeks, and on such deposit the balance pre-deposit was waived and recovery stayed till disposal of the appeal.

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