Pre-deposit relief denied where marketability and exemption claims were not prima facie established for the product.

Full waiver of pre-deposit was declined because the appellant had not made out a sufficient prima facie case on marketability or on the claim that the product required further processing with jaggery and curing to become chewable. The record also did not clearly show that the goods were transferred otherwise than by sale. The claim to exemption from additional duty was not accepted at this stage, as the notification appeared to impose additional duty independently of basic duty. Deposit of Rs. 2.5 lakhs was ordered within two months, and on compliance the balance duty and penalty were waived and recovery stayed to that extent.

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Issues: Whether full waiver of pre-deposit and stay of recovery were justified on a prima facie case regarding marketability of the product and the applicability of exemption from additional duty.

Analysis: The Tribunal found that the appellant had not prima facie shown that the mixture could not be used as chewing tobacco or that further processing with jaggery and curing was essential to make it chewable. The record also did not clearly establish that the goods were transferred without sale, and the contention that exemption from additional duty was available was not accepted at this stage because the notification appeared to levy additional duty independently of basic duty.

Conclusion: Full waiver was declined. The appellant was directed to deposit Rs. 2.5 lakhs within two months, and on such deposit the balance duty and penalty were waived and recovery stayed to that extent.

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