Pre-deposit waiver in central excise appeals may be granted where valuation issues are arguable and prior deposits suffice.

Pre-deposit under Section 35F of the Central Excise Act may be waived where the appeal raises an arguable valuation issue and the appellant has already deposited an amount sufficient to cover the disputed demand. The note identifies a valuation question on whether profit, if any, should be added while determining the assessable value of an intermediate product under the applicable valuation rule. It also records that the deposit in the PLA account was adequate for the demand under consideration, and therefore no further deposit was directed.

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Issues: Whether the appellant was entitled to waiver of the requirement of pre-deposit under Section 35F of the Central Excise Act, 1944.

Analysis: The appeal raised an arguable question on valuation, including whether profit, if any, was to be added while determining the assessable value of the intermediate product under the applicable valuation rule. The appellant also showed that a substantial amount had already been deposited in the PLA account, which was sufficient to cover the demand under consideration.

Conclusion: The requirement of pre-deposit was waived and no further deposit was directed.

Ratio Decidendi: Where the appeal discloses an arguable case and the amount already deposited is adequate, pre-deposit under Section 35F may be waived.

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