Pre-deposit reduction for an SSI assessee where exemption dispute over waste classification was treated as a factual issue.

At the interim stage, the Tribunal's pre-deposit order was examined only for whether the amount fixed was justified, while the question whether refined products, soap stock derivatives and acid oil qualified as "waste" entitled to exemption under the notification was left to be proved before the Tribunal at final hearing. The assessee's undisputed small scale industry status was taken into account in assessing the burden of deposit, and the required pre-deposit was reduced from Rs. 8,00,000 to Rs. 5,00,000.

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Issues: Whether the pre-deposit directed by the Tribunal required reduction in view of the assessee's SSI status and the nature of the dispute.

Analysis: The dispute on whether the refined products, soap stock derivatives and acid oil were "waste" entitled to exemption under the relevant notification was treated as a question of fact to be established before the Tribunal at the final stage. At the stage of interim relief, the only matter for consideration was whether the amount fixed for pre-deposit was justified. The assessee's status as a small scale industry was not disputed, and that was taken into account while assessing the burden of pre-deposit.

Conclusion: The pre-deposit was reduced from Rs. 8,00,000 to Rs. 5,00,000, and the appeal succeeded to that extent in favour of the assessee.

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