Place-of-removal valuation under excise rules led to refusal of complete pre-deposit waiver, with only conditional stay granted.

Rule 7 of the Central Excise Valuation Rules was applied to aviation turbine fuel cleared from a bulk terminal to fuel stations, with duty assessed by reference to the value at the place of removal. On that basis, the appellant was found to have no prima facie case on merits for complete waiver of pre-deposit. The limitation plea was treated as a mixed question of law and fact for final hearing. In view of the duty confirmed and the amount already deposited, complete waiver was refused, but conditional waiver of the balance pre-deposit and stay of recovery were granted on further compliance.

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Issues: (i) Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The valuation dispute arose from clearance of Aviation Turbine Fuel from the bulk terminal to fuel stations. Rule 7 of the Central Excise Valuation Rules indicated that duty was to be discharged with reference to the value at the place of removal. On that basis, the appellant was found to have no prima facie case on merits. The plea on limitation was treated as a mixed question of law and fact to be examined at final hearing. In view of the duty confirmed and the amount already deposited, the appellant was held not entitled to complete waiver, though further deposit was directed and recovery stayed on compliance.

Conclusion: Complete waiver of pre-deposit was refused, but conditional waiver of the balance amount and stay of recovery were granted.

Final Conclusion: The stay application was allowed in part by directing further deposit of a specified amount and granting stay of recovery of the balance pending disposal of the appeal.

Ratio Decidendi: Where the valuation provision ties duty to the place of removal, a prima facie merit challenge to the assessed value may fail, and complete waiver of pre-deposit can be declined while granting only conditional relief.

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