Valuation of free issue materials and reduced pre-deposit led to remand for fresh appellate consideration.

A valuation dispute concerning the assessable value of free issue materials required examination on merits, and the matter was not properly decided by the lower appellate authority because the appeal had been dismissed for default in pre-deposit. In view of the appellant's stated financial hardship, a reduced pre-deposit was treated as reasonable. The case was remanded to the Commissioner (Appeals) for fresh consideration after compliance with the directed deposit, with no further deposit insisted upon and all issues kept open.

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Issues: Whether the appeal should be remanded for fresh consideration on merits in a dispute concerning assessable value of free issue materials, and whether the appellant should be granted partial waiver of pre-deposit in view of financial hardship.

Analysis: The appeal was not decided on merits by the lower appellate authority and had been dismissed for default in making pre-deposit. The dispute turned on valuation of free issue materials used in manufacture, which required examination on merits. The appellant expressed financial hardship and offered to deposit a reduced amount. In these circumstances, the reduced pre-deposit was considered reasonable, and the matter was directed to be examined afresh by the Commissioner (Appeals) after compliance, without insisting on any further deposit.

Conclusion: The matter was remanded to the Commissioner (Appeals) after directing a pre-deposit of Rs. 4 lakhs, with all issues kept open and further deposit waived upon compliance.

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