Pre-deposit waiver in central excise granted on prima facie case, with penalty waived and appeals remanded for merits.

A prima facie case and claimed financial hardship were considered in a request for waiver of pre-deposit under Section 35F of the Central Excise Act, 1944. The Tribunal found that the appellants had made out a prima facie case and permitted time to make the duty deposit, while waiving the penalty amount on compliance with the pre-deposit condition. The appeals were then remanded to the Commissioner (Appeals) for a de novo decision on merits.

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Issues: Whether the appellants were entitled to waiver of the pre-deposit requirement under Section 35F of the Central Excise Act, 1944, and consequent remand of the appeals for consideration on merits.

Analysis: The appellants asserted financial hardship and a prima facie case, while the department relied on the findings in the adjudication order regarding non-compliance with Modvat procedure. On consideration of the submissions, the Tribunal found that a prima facie case was made out and granted time to make the required duty deposit. The penalty amount was waived upon compliance with the pre-deposit condition.

Conclusion: The pre-deposit of duty of Rs. 30,000 was directed to be made within three months, penalty of Rs. 60,000 was waived on such compliance, and the appeals were remanded to the Commissioner (Appeals) for de novo decision on merits.

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