Pre-deposit waiver in excise dispute limited to 25% where hardship was not proved and precedent lost force

A claim for full waiver of pre-deposit on an excise duty demand relating to refining used or waste oil into reclaimed base oil was rejected because the appellant's cited precedent was treated as no longer effective in view of the connected High Court interim order. The Tribunal also found that financial hardship was not established on the material produced, although those documents were considered in fixing the deposit amount. Full waiver was declined, but the appellant was required to deposit 25% of the duty demanded within the stipulated time; on compliance, recovery of the balance was stayed and waived.

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Issues: Whether full waiver of pre-deposit and stay of recovery of the adjudged excise duty could be granted, and what interim deposit condition was warranted.

Analysis: The demand arose on the process of refining used or waste oil into reclaimed base oil. The appellant relied on earlier Tribunal decisions holding similar processes not amounting to manufacture and contended that Note 9 to Chapter 27 of the First Schedule to the Central Excise Tariff Act had been wrongly applied. The request for complete waiver was not accepted, as the cited precedent was treated as having lost its force in view of the interim order passed by the High Court in the connected matter. The asserted financial hardship was also not established from the material produced, though the documents were taken into account while fixing the deposit percentage.

Conclusion: Full waiver of pre-deposit was declined. The appellant was directed to deposit 25% of the duty demanded within the stipulated time, and on compliance, the balance dues were stayed and waived.

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