Interim pre-deposit in excise dispute hinged on prima facie evidence, corroboration of weighment slips, and financial hardship.

Interim pre-deposit in a central excise dispute turned on the strength of the Department's evidence and the appellant's prima facie case. For one demand component based on weighment slips from a third-party dharamkanta and a statement later unavailable for cross-examination, the material was treated as weak, and no pre-deposit was required at that stage. For the second component, weighment slips recovered from the factory were corroborated by production register entries and truck numbers, so a partial pre-deposit was directed. The commentary also notes that financial hardship was considered in fixing the deposit, and waiver and stay were granted for the balance during pendency of the appeal.

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Issues: (i) Whether pre-deposit of the confirmed duty and penalty was warranted at the interim stage on the basis of the demand founded on weighment slips from Jain Dharamkanta and the statement of a third party; (ii) Whether the demand founded on weighment slips recovered from the factory read with production register entries disclosed a sufficient prima facie case against the appellant.

Issue (i): Whether pre-deposit of the confirmed duty and penalty was warranted at the interim stage on the basis of the demand founded on weighment slips from Jain Dharamkanta and the statement of a third party.

Analysis: The demand on this part rested mainly on weighment slips that did not bear the appellant's name or any signature of its authorised representative. The Revenue relied on the statement of Shri Rajendra Prasad Jaiswal to connect those slips with the appellant, but he was not available for cross-examination due to his demise. The order also noticed that the statement had been recorded in investigations concerning another concern. On the material before it, the appellant was found to have a strong prima facie case on this component and the financial position was also a relevant consideration.

Conclusion: The appellant was not required to make pre-deposit on this component at the interim stage.

Issue (ii): Whether the demand founded on weighment slips recovered from the factory read with production register entries disclosed a sufficient prima facie case against the appellant.

Analysis: In respect of the material recovered from the appellant's factory, the weighment slips were corroborated by the production register entries and the truck numbers referred to in the records. On this basis, the appellant was held not to have made out a strong prima facie case for total waiver. The tribunal also took note of the appellant's contention regarding limited entries in the production records and its financial hardship while fixing the amount to be deposited.

Conclusion: Pre-deposit was directed on this component and the waiver was granted only after compliance.

Final Conclusion: Interim relief was granted in part by requiring a partial pre-deposit, while waiver and stay were allowed for the balance during pendency of the appeals.

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