Job-work SSI exemption claim did not justify full pre-deposit waiver; limited deposit secured stay of recovery.

Complete waiver of pre-deposit was refused where the applicant claimed SSI exemption in a job-work clearance arrangement, but the record raised a factual dispute on the movement and return of semi-finished goods. The notification governing job work contemplated duty liability where the goods were not received back from the job worker, and the absence of supporting official communication weakened the claim for full interim relief. A limited pre-deposit was therefore directed, with the balance dues waived and recovery stayed during the appeal on compliance.

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Issues: Whether, in the application for waiver of pre-deposit, the applicant was entitled to complete waiver of duty, penalty and interest, having regard to the job work arrangement and the SSI exemption notification.

Analysis: The applicant relied on clearance of floor grills through job work under the relevant exemption notification and contended that the value of the job-work material remained within the SSI exemption limit. The available record indicated that clause (b) of the job-work notification contemplated duty liability where the goods were not received back from the job worker. The record also showed a factual dispute on whether the semi-finished goods were moved to the job worker in the manner claimed, and the adjudicating authority had noted the absence of official communication regarding such movement. In these circumstances, the entitlement to full waiver was not made out, but the quantum of pre-deposit could be moderated.

Conclusion: Complete waiver was declined and a limited pre-deposit of Rs. 50,000 was directed. On deposit of that amount, the balance dues were waived and recovery was stayed during pendency of the appeal.

Final Conclusion: The interim relief application was only partly accepted, with conditional protection granted against recovery after compliance with the directed deposit.

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