Press mud treated as waste, not final product, supported waiver of pre-deposit and stay of recovery.

Waiver of pre-deposit and stay of recovery were granted where the applicant contended that press mud was only a by-product or waste arising from manufacture and not a final product, making Rule 57CC of the Central Excise Rules inapplicable. On the facts, the balance of convenience was found to favour the applicant, so the entire pre-deposit was waived and recovery remained stayed during the appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery on the ground that press mud was waste and not a final product so as to attract Rule 57CC of the Central Excise Rules.

Analysis: The applicant's process of manufacture resulted in press mud as a by-product or waste, which was not treated as its final product. On this basis, the applicability of Rule 57CC was disputed. Considering the facts and circumstances, the balance of convenience was found to lie with the applicant.

Conclusion: Waiver of the entire pre-deposit was granted and recovery was stayed during the pendency of the appeal.

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