Prima facie no manufacture: tray assembly of food items did not justify excise liability, so pre-deposit was waived.

Assembling separately prepared food items into a tray for onboard service was treated, at the prima facie stage, as not amounting to manufacture, so no strong excise duty demand was shown. The label or name card placed in the cutlery packet was regarded only as an indicator of catering service and not as proof that the goods were manufactured by the assessees or that brand-name based liability arose. In the absence of a strong prima facie case for duty and following a similar stay order, waiver of pre-deposit was granted and recovery of the disputed dues was stayed during the appeal.

---

---

Issues: Whether the appellants were required to make pre-deposit of the demanded service tax and penalty, and whether the activity of assembling different food items in a tray and serving them under a label gave rise to a prima facie case for excise duty liability.

Analysis: The assembling of separately prepared food items into a tray for onboard service was held, at the prima facie stage, not to amount to manufacture. The label or name card placed in the cutlery packet was treated only as an indication of catering service and not as an assertion that the goods were manufactured by the appellants. In view of the absence of a strong prima facie case for duty demand, and following the stay granted in a similar matter, waiver of pre-deposit was warranted.

Conclusion: Waiver of pre-deposit was granted and recovery of the disputed dues was stayed during the pendency of the appeal, in favour of the assessee.

Ratio Decidendi: Mere assembling of different food items into a tray for service does not, by itself, constitute manufacture or establish a brand-name based excise liability.

---