Further packing in assessable value: total pre-deposit waiver denied, with conditional stay granted on specified compliance.

In a Central Excise dispute on whether the cost of further packing should form part of assessable value, CEGAT, Mumbai held that the packing-value principles from the Supreme Court required closer factual scrutiny of the packing arrangement and sales pattern. On the material then available, no prima facie case for full waiver of pre-deposit was made out. Total waiver was therefore declined, and the appellants were directed to make specified pre-deposits, with recovery of the balance duty demand stayed on compliance.

---

---

Issues: Whether the applicants were entitled to total waiver of pre-deposit in a dispute concerning inclusion of the cost of further packing in the assessable value under the Central Excise Act, and, failing that, what amount should be directed to be deposited for hearing of the appeal on merits.

Analysis: The relief sought depended upon a detailed examination of the nature of the packing and the pattern of sales, because application of the Supreme Court's packing-value principles required a closer scrutiny of the facts on record. On the materials then available, no prima facie case for full waiver was made out. The balance between the competing positions led to a conditional dispensation of the remaining duty demand, subject to specified pre-deposits.

Outcome: Total waiver of pre-deposit was declined. The applicants were directed to deposit Rs. 12 lakhs and Rs. 3 lakhs respectively, and recovery of the balance duty demand was stayed on such compliance.

---