Broad construction of "equipment" in stenter capacity computation led to refusal of pre-deposit waiver.

In a dispute over annual capacity fixation for independent textile processors, the Tribunal treated the gallery attached to a hot air stenter as part of the "equipment" for capacity computation because it helped prevent heat loss and assisted the heat-setting process. Relying on its earlier view that the term was used in a broad sense, the Tribunal found the balance of convenience in favour of the Revenue. As no financial hardship was pleaded, waiver of pre-deposit was declined and the appellants were directed to deposit the full amount sought.

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Issues: Whether the appellants were entitled to waiver of deposit pending appeal in a matter concerning fixation of annual capacity for independent textile processors.

Analysis: The appellants challenged the inclusion of galleries attached to the hot air stenter in the annual capacity computation. The Tribunal noted that in a similar matter it had held that the expression "equipment" in Explanation I was used in a general sense and was wide enough to include the gallery attached to the stenter, since it facilitated prevention of heat loss and aided the process of heat setting. In view of that earlier decision, the balance of convenience was found to be in favour of the Revenue. The appellants also did not plead any financial hardship.

Conclusion: Waiver of deposit was declined and the appellants were directed to deposit the full amount sought.

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