Waiver of pre-deposit and place of removal dispute: no substantial question of law arose on outward transportation tax liability.

In an appeal under Section 35-G of the Central Excise Act arising from a waiver of pre-deposit order, the court held that no substantial question of law arose at the waiver stage on the place of removal or liability to service tax on outward transportation. The issue whether the place of removal was the factory gate or the consumer's destination depended on construction of the F.O.R. contract clause and surrounding facts, making it a mixed question of law and fact. Time was granted to comply with the Tribunal's deposit direction, and the appeal was disposed of without adjudication on the merits of the service tax dispute.

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Issues: Whether, in an appeal under Section 35-G of the Central Excise Act, 1944 arising from an order on waiver of pre-deposit, any substantial question of law arose for consideration on the place of removal and liability to service tax on outward transportation.

Analysis: The question whether the place of removal was the factory premises or the destination of the consumer depended on the construction of the F.O.R. contract clause and the surrounding facts. The matter involved a disputed question of law and fact. At the stage of considering waiver of pre-deposit, no substantial question of law was found to arise for determination. Time was, however, granted to deposit the amount directed by the Tribunal.

Conclusion: No substantial question of law arose at the waiver stage, and the appeal was disposed of without adjudication on the merits of the service tax issue.

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