Pre-deposit in excise appeal upheld where financial hardship was unproven and the record showed a prima facie case against the assessee.

A pre-deposit direction under the excise appellate provision will not be disturbed where the assessee fails to prove financial hardship with credible evidence. The Tribunal was justified in rejecting an income claim supported only by an unconvincing Tehsildar certificate, and the record also showed prima facie involvement in alleged clandestine removal of excisable goods. In those circumstances, the conditional waiver order requiring deposit of part of the demand was upheld, and no interference was called for. The connected appeal was to proceed on merits if the deposit was made within the extended time granted.

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Issues: Whether the Tribunal was justified in directing pre-deposit under Section 35-F of the Central Excise Act, 1944 and whether the appellant had established sufficient grounds for waiver of the deposit.

Analysis: The appellant failed to substantiate the plea of low salary and financial hardship with reliable material. The certificate issued by the Tehsildar was not accepted as competent evidence of income. The record also showed prima facie involvement of the appellant, a director of the company, in the alleged clandestine removal of excisable goods, and the company had not challenged or complied with the Tribunal's earlier directions. In these circumstances, the Tribunal's consideration of the facts and its direction to deposit part of the amount could not be termed unjustified.

Conclusion: The direction to make pre-deposit was upheld and no interference was called for; the challenge failed.

Final Conclusion: The appeal was disposed of without disturbing the Tribunal's conditional waiver order, while permitting further time to comply and directing expeditious disposal of the connected appeal on merits if the deposit was made.

Ratio Decidendi: A pre-deposit direction under the applicable excise appellate provision will not be interfered with where the assessee fails to establish financial hardship with credible evidence and the record discloses a prima facie case against him.

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