Manufacture dispute over hydrogen gas cylinder packing and partial pre-deposit ordered as a condition for stay pending appeal.

Compressing and filling hydrogen gas into cylinders was treated as a substantial question on manufacture, requiring detailed examination of the competing contentions. The Tribunal declined to transfer the matter to another Bench and did not grant complete waiver of pre-deposit. Instead, it ordered a partial deposit as a condition for stay of recovery of the remaining duty and penalty during the appeal, with non-compliance exposing the applicant to dismissal of the appeal without further notice.

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Issues: Whether compressing and filling hydrogen gas into cylinders amounted to manufacture, and whether pre-deposit of duty and penalty could be dispensed with pending appeal.

Analysis: The Tribunal noted that the dispute raised a substantive question on manufacture in relation to the process of compressing hydrogen gas for cylinder packing and that a detailed examination of the contentions was necessary. It declined to transfer the matter to another Bench and, instead of granting complete waiver, directed a partial pre-deposit as a condition for stay of the remaining demand during the pendency of the appeal.

Outcome: The applicant was directed to deposit Rs. one lakh, with stay of recovery of the balance duty and penalty on compliance, failing which the appeal would stand dismissed without further notice.

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