Pre-deposit waiver under Section 35F: financial hardship and a limitation dispute justified only partial deposit pending appeal

In an application for stay and waiver of pre-deposit pending appeal under Section 35F of the Central Excises and Salt Act, 1944, the Court considered bank and auditor certificates showing limited capital and assets as evidence of financial hardship. It also noted that the appeal raised a limitation dispute and that the Tribunal's earlier view on hardship should not be treated with undue harshness when exercising discretionary relief under Section 35F. The petitioner was required to make a partial deposit within twelve weeks, and the balance of the demand was waived until disposal of the appeal.

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Issues: Whether, in an application for stay and waiver of pre-deposit pending appeal, the petitioner had shown sufficient financial hardship to justify substantial waiver under Section 35F of the Central Excises and Salt Act, 1944.

Analysis: The Court noted the materials placed to show financial hardship, including bank and auditor certificates indicating limited capital and assets. It also observed that the merits of the appeal involved a limitation dispute and that the Tribunal's earlier view on hardship was not to be treated with undue harshness in the exercise of discretionary power under Section 35F.

Conclusion: The petitioner was directed to deposit Rs. 1,50,000 within twelve weeks, and the balance of the demanded amount was waived till disposal of the appeal.

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