Prima facie exclusion from Clearing and Forwarding Agents Service led to waiver of balance pre-deposit and stay of recovery.

Packing salt into smaller packs and delivering it on principals' instructions was examined on a prima facie basis and found not to fall within Clearing and Forwarding Agents Service. The deposits already made were treated as sufficient compliance with the pre-deposit requirement under Section 35F of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. On that basis, the balance pre-deposit was waived and recovery was stayed pending the appeal.

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Issues: Whether the activity of packing salt in smaller packs and making delivery at the instructions of principals was prima facie classifiable as Clearing and Forwarding Agents Service, and whether the assessee was entitled to waiver of pre-deposit and stay of recovery.

Analysis: The activity was examined on a prima facie basis and was found not to fall within the category of Clearing and Forwarding Agents Service. The amounts already deposited were treated as sufficient compliance with Section 35F of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994.

Outcome: Waiver of the balance pre-deposit was granted and recovery was stayed during pendency of the appeal.

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