Prima facie notification eligibility supported partial pre-deposit, while unsupported financial hardship limited waiver of duty and penalty.

A prima facie view of eligibility under Notification No. 88/88-C.E. supported partial waiver of pre-deposit, because the manufacturing location had not clearly ceased to be a village merely by inclusion within municipal limits and the packing materials appeared to fall within the notification's relevant entry. The claim of financial hardship was not backed by evidence, so full waiver was not justified. Partial pre-deposit was therefore directed, with the balance of duty and penalty stayed for recovery purposes.

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Issues: Whether waiver of pre-deposit of duty and penalty was warranted in part on a prima facie view of eligibility under Notification No. 88/88-C.E. and the claim of financial hardship.

Analysis: The order records a prima facie view that the manufacturing location had not clearly ceased to be a village merely because it was brought within municipal limits, and also notes a prima facie coverage of the packing materials under the relevant entry in the notification. At the same time, the claim of financial hardship was found unsupported by evidence. In these circumstances, partial pre-deposit was directed.

Outcome: The applicant was directed to deposit Rs. 15 lakhs and was granted waiver of the remaining duty and penalty for the purpose of stay of recovery.

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