Pre-deposit waiver in excise appeal limited by hardship and goods classification after the generating set was treated as excisable.

Waiver of pre-deposit in an excise appeal was considered on the facts of the generating set's classification and the appellant's claimed hardship. The generating set was treated as excisable goods despite site assembly and ground fixation, and it was found to have come into existence and become operational before the exemption date relied on. The plea that electrical permission and defect removal prevented use was rejected as no legal bar on those facts. Financial hardship was not substantiated sufficiently for complete waiver, but the record justified partial relief pending appeal.

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Issues: Whether waiver of pre-deposit of the disputed duty and penalty was justified pending appeal.

Analysis: The generating set was treated as goods for excise purposes notwithstanding its assembly at site and fixation to the ground. The set was found to have come into existence on the admitted date and to have been operational before the exemption date relied on by the appellant. The plea of inability to use the set without electrical permission and removal of defects was not accepted as a legal bar on the facts. On the question of financial hardship, no satisfactory material was produced to justify complete waiver, though the appellant's plea warranted partial relief.

Conclusion: Complete waiver of pre-deposit was declined and a substantial deposit was directed, with the balance of duty and penalty waived pending appeal.

Final Conclusion: The application was allowed only to the extent of partial dispensation of the pre-deposit, and the appeal was kept pending subject to compliance with the deposit direction.

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