Pre-deposit dispensed with where packaged commodities guidance and metrology clarification supported remand for merits review.

Pre-deposit was dispensed with because the Tribunal found a prima facie case that the lower authority's approach to 8 ml shampoo sachets was not sustainable in light of the packaged commodities framework, the departmental circular and the metrology clarification. The Tribunal treated the circular as referring to 10 gms and relied on an earlier similar appellate order to support reconsideration on merits. The impugned order was set aside and the matter was remanded for de novo adjudication by the Commissioner (Appeals) without insisting on any pre-deposit.

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Issues: Whether the assessee was required to make the pre-deposit directed by the Commissioner (Appeals), and whether the matter should be remanded for decision on merits without insisting on any deposit.

Analysis: The appeal arose from dismissal under the pre-deposit provision. The assessee relied on the packaged commodities framework, the departmental circular, and the metrology clarification to contend that the 8 ml shampoo sachets were not to be treated in the manner assumed by the lower authority. The Tribunal found that the circular itself referred to 10 gms and that the metrology clarification, along with the earlier appellate order in a similar matter, supported the assessee at least prima facie. In these circumstances, the assessee was held to have made out a strong case for consideration of the appeal on merits without being put to terms.

Conclusion: The pre-deposit requirement was dispensed with and the impugned order was set aside. The matter was remanded to the Commissioner (Appeals) for de novo decision on merits without insisting on any pre-deposit.

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