Waiver of pre-deposit granted where the appellant showed a prima facie case and financial hardship in excise proceedings.

Waiver of pre-deposit was considered on two grounds: a prima facie arguable case on merits and financial hardship. The tribunal found the demand not immediately sustainable at the interim stage because the record did not establish the relevant relationship under the excise provision and there was no satisfactory material to support price depression by comparison with comparable goods. It also accepted pleaded losses, closure of the factory, resignation of directors, retrenchment of staff, and the appellant's overall financial condition as constituting hardship. Pre-deposit was therefore waived, subject to an undertaking not to transfer or alienate the plant and machinery until disposal of the appeal.

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Issues: (i) Whether the appellant had made out a prima facie case for waiver of pre-deposit. (ii) Whether financial hardship justified waiver of the pre-deposit condition.

Issue (i): The order examined whether the demand could prima facie be sustained on the basis of relationship and alleged suppression. In the absence of evidence establishing relationship under the relevant excise provision and in the absence of satisfactory material showing depression of prices by comparison with comparable goods, the demand on the higher price basis did not appear immediately sustainable at the interim stage.

Conclusion: A prima facie case was found in favour of the appellant for waiver consideration.

Issue (ii): The order considered the pleaded losses, closure of the factory, resignation of directors, retrenchment of staff, and the overall financial condition of the appellant. On those facts, the requirement of immediate pre-deposit was regarded as causing hardship.

Conclusion: Financial hardship was accepted and supported waiver of pre-deposit.

Final Conclusion: The requirement of pre-deposit was waived, subject to an undertaking not to transfer or alienate the plant and machinery until disposal of the appeal.

Ratio Decidendi: Pre-deposit may be waived where the appellant shows a prima facie arguable case on merits and financial hardship justifying interim relief.

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