SSI exemption and brand-name use were referred for authoritative determination, with pre-deposit waived and recovery stayed pending outcome.

Eligibility for SSI exemption under Notification 175/86 was not finally decided because the Tribunal found conflicting High Court views on the effect of use of a trade mark or logo, including the ITI brand name, and referred the question to the Supreme Court for authoritative determination. Pending that reference, the Tribunal waived pre-deposit of the balance duty and penalty and stayed recovery, preserving the appellant's position until the referred issue is disposed of by the proper authority.

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Outcome: Waiver of pre-deposit of the balance duty and penalty granted, recovery of the balance stayed, and the matter referred to the Supreme Court under Section 35H of the Central Excises and Salt Act, 1944.

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