Pre-deposit waiver under excise appeal proviso granted partly, with limited deposit and stay on balance recovery.

The article explains that, under the proviso to Section 35F of the Central Excises and Salt Act, the pre-deposit requirement for a statutory appeal may be relaxed where the appellant shows an arguable case and operates as a small scale unit. Relief was granted by directing a limited deposit of Rs. 2,50,000 within one month, waiving the balance pre-deposit, and protecting the appellant from recovery proceedings during the appeal period on compliance with the deposit condition.

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Issues: Whether the pre-deposit condition attached to the statutory appeal under the proviso to Section 35F of the Central Excises and Salt Act should be waived in part.

Analysis: The petitioner had an arguable case and was a small scale unit. On that basis, relief was warranted under the proviso to Section 35F. The order balanced the interests involved by directing a limited deposit of Rs. 2,50,000 within one month and granting waiver of the balance pre-deposit. Protection was also granted against recovery proceedings during the pendency of the appeal upon compliance with the deposit direction.

Conclusion: The pre-deposit requirement was waived in part, subject to deposit of Rs. 2,50,000, and further recovery for the balance was stayed during the appeal.

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