Prior permission under exemption notification held essential, so full pre-deposit waiver was denied but partial relief granted on terms.

An exemption notification for services to Special Economic Zone units required prior permission from the competent Commissioner as a condition for availing the benefit. Because that permission had not been obtained, full waiver of pre-deposit was refused. Partial relief was still granted on terms, with a direction to deposit a specified amount within the stipulated time, after which the balance duty and penalty were waived and recovery stayed.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery despite not obtaining the permission required under the exemption notification.

Analysis: The appellant sought the benefit of the exemption notification for services rendered to units in the Special Economic Zone, but the notification made permission from the competent Commissioner a condition for availing the benefit. The record showed that such permission had not been obtained. In view of that admitted non-compliance, full waiver was not warranted, though partial relief could be granted on deposit of a specified amount.

Conclusion: The appellant was granted only partial relief. It was directed to deposit Rs. 50,000 within the stipulated time, and on such deposit the balance duty and penalty were waived and recovery stayed.

Ratio Decidendi: Where an exemption notification makes prior permission a condition for availing the benefit, non-compliance may justify denial of full waiver of pre-deposit, though partial waiver can still be granted on terms.

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