Pre-deposit waiver in excise appeals turns on prima facie case and proven financial hardship, with conditional relief possible.

In pre-deposit proceedings, full waiver may be refused where the applicant does not establish a strong prima facie case or genuine financial hardship. The text notes that issues such as limitation, duty liability under the job-work notification, and the merits of the demand were left for final hearing, while the immediate question was only whether recovery should be stayed pending appeal. On the material considered, the basic excise duty liability was treated as lying on the manufacturer, and the financial hardship plea was not accepted in full view of turnover and assets. Partial relief was granted through conditional deposit, with the balance stayed and individual penalties protected.

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Issues: Whether full waiver of pre-deposit was justified in the appeal proceedings, and whether the applicants had made out a prima facie case and financial hardship warranting complete stay of recovery.

Analysis: The applications were considered only for waiver of pre-deposit pending the appeal. The Court noted that the questions relating to limitation, duty liability under the job-work notification, and the merits of the demand would be examined at the stage of final hearing. On the material before it, the Court held that a prima facie case for complete waiver was not established, because the basic liability to pay central excise duty was treated as lying on the manufacturer, and the notification was understood as casting the supplier's responsibility in respect of the final product. The plea of financial hardship was also not accepted in full view of the sales turnover and the quantum of assets.

Conclusion: Full waiver of pre-deposit was declined. Partial relief was granted by directing deposit of specified amounts and staying recovery of the balance, while protection was extended in respect of the individual penalties.

Final Conclusion: The applications for waiver of pre-deposit were allowed only in part, with conditional deposit ordered and the remaining recovery stayed during pendency of the appeal.

Ratio Decidendi: In pre-deposit matters, complete waiver may be refused where no strong prima facie case or financial hardship is shown, and conditional protection may be granted instead.

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