Partial pre-deposit waiver under Central Excise law upheld where statutory discretion addressed undue hardship and no writ interference was warranted

Article 226 interference was declined against a pre-deposit order passed under the proviso to Section 35F of the Central Excise Act, 1944. The appellate authority had exercised statutory discretion to grant only partial waiver and required deposit of a reduced amount towards duty and penalty. That approach was treated as reasonable on the facts and consistent with the proviso, which allows relaxation where full pre-deposit would cause undue hardship. The writ court therefore found no basis to disturb the partially favourable pre-deposit direction.

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Issues: Whether the High Court should interfere under Article 226 of the Constitution of India with an order passed under the proviso to Section 35F of the Central Excise Act, 1944 partially waiving the condition of pre-deposit.

Analysis: The appellate authority had exercised its statutory discretion to waive the pre-deposit requirement only in part and had directed deposit of a reduced amount towards duty and penalty. The order was found to be reasonable on the facts and within the scope of the power conferred by the proviso to Section 35F, which permits relaxation where insistence on full pre-deposit would cause undue hardship.

Conclusion: No interference was warranted in writ jurisdiction with the partially favourable pre-deposit order.

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