Pre-deposit waiver under excise law is not automatic for sick industrial companies; partial relief may still be enforced.

Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not extend to the obligation to make a pre-deposit under Section 35F of the Central Excise Act, 1944, and sick-company status by itself does not justify complete waiver. The tribunal may still consider financial hardship and grant partial relief by reducing the deposit amount, but the statutory pre-deposit requirement remains enforceable. If the reduced amount is not deposited within the time granted, dismissal of the appeals for non-compliance is justified.

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Issues: Whether a sick industrial company was entitled to waiver of the pre-deposit required under Section 35F of the Central Excise Act, 1944, and whether dismissal of the appeals for non-compliance with the pre-deposit order was justified.

Analysis: Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985 does not extend to the obligation to make a pre-deposit under Section 35F of the Central Excise Act, 1944. Mere status as a sick industrial undertaking does not by itself create an entitlement to complete waiver of pre-deposit. The Tribunal also took note of financial hardship and granted substantial partial relief by reducing the deposit requirement from the full demand to a lesser amount. Since the amount directed to be deposited was not paid within the time granted, the appeals became liable to dismissal for non-compliance with the statutory requirement.

Conclusion: The refusal of complete waiver and the dismissal of the appeals for failure to comply with the pre-deposit direction were upheld; the decision was against the assessee.

Ratio Decidendi: Liability to make a pre-deposit under Section 35F of the Central Excise Act, 1944 is not protected by Section 22 of the Sick Industrial Companies (Special Provisions) Act, 1985, and sick-company status alone does not justify complete waiver.

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