Pre-deposit waiver under exemption notification denied where mandatory declaration was missing and limitation needed fuller examination.

Complete waiver of pre-deposit was refused because the exemption notification for job-work clearances required a declaration by the principal supplier, and that declaration had admittedly not been filed; the appellant therefore failed to show a strong prima facie case that the omission was merely procedural. The limitation plea was not ant at this stage because it involved mixed questions of law and fact requiring fuller examination at final hearing. Partial relief was granted by directing a pre-deposit and staying recovery of the balance pending disposal of the appeal, subject to compliance.

---

---

Issues: Whether the appellant was entitled to complete waiver of pre-deposit in a duty demand arising from job-work clearances under the applicable exemption notification, and whether the plea of limitation justified full waiver.

Analysis: The dispute concerned duty liability on goods manufactured on job-work basis, where the principal raw material supplier had not filed the declaration required by the applicable notification. The appellant relied on Notification No. 84/1994-C.E., while the departmental case was that the conditions of the notification were not complied with. The Tribunal noted that the notification itself required declaration by the principal supplier, which had admittedly not been filed. It also held that the limitation plea involved mixed questions of law and fact and required deeper consideration at final hearing. As the appellant was registered with the Central Excise department, the plea that non-filing of declaration was merely procedural did not establish a prima facie case for complete waiver.

Conclusion: Complete waiver was declined. The appellant was directed to deposit Rs. 1 lakh and the balance demand was stayed pending disposal of the appeal, subject to compliance.

Final Conclusion: The stay application was allowed only to the extent of partial pre-deposit, with recovery of the remaining amount kept in abeyance until final adjudication.

Ratio Decidendi: In a stay application, where the statutory conditions of the exemption notification are admittedly unfulfilled and the plea of limitation requires fuller examination, complete waiver of pre-deposit is not warranted absent a strong prima facie case.

---