Tea cess on exports under bond: complete pre-deposit waiver declined, with partial stay granted pending appeal.

Cess on tea manufactured for export under bond was treated as prima facie leviable under Section 25 of the Tea Act, 1953, which imposes cess as a duty of excise on tea produced in India. In the absence of any exemption notification extending excise-duty relief to the cess, complete waiver of pre-deposit was not justified. The applicants were therefore required to deposit Rs. 2 lakhs, and on such deposit, recovery of the balance cess and interest remained stayed pending disposal of the appeal.

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Issues: Whether, in the application for stay and waiver of pre-deposit, the applicants were entitled to complete waiver of the cess and interest demand raised on tea exported under bond.

Analysis: The demand arose from cess on tea manufactured for export under bond. The Tribunal noted that Section 25 of the Tea Act, 1953 levies cess as a duty of excise on tea produced in India, and that the available precedent had treated cess as leviable under that provision. It also noted the absence of any exemption notification specifically extending excise-duty exemption to the cess in question. On that prima facie basis, complete waiver was not warranted, but a limited safeguard could be granted pending disposal of the appeal.

Conclusion: Complete waiver of the demand was declined. The applicants were directed to deposit Rs. 2 lakhs, and upon such deposit, recovery of the balance cess and interest was stayed until disposal of the appeal.

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