Pre-deposit waiver in excise appeals may be limited where a prima facie exemption claim exists but hardship is not shown.

Interim waiver of pre-deposit in an excise appeal may be granted only partly where the applicant shows a prima facie case but no financial hardship. The Tribunal found that assignment and ownership of the brand name under Notification No. 1/93-C.E. raised a prima facie issue requiring fuller consideration on merits, but total waiver was not justified because hardship had not been pleaded. It therefore refused complete waiver, ordered a reduced deposit, and stayed recovery of the balance during the appeal.

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Issues: Whether the applicants were entitled to total waiver of pre-deposit and stay of recovery in respect of the excise duty demanded.

Analysis: The applicants claimed exemption under Notification No. 1/93-C.E. on the basis of assignment of the brand name and contended that the relevant trade mark rights had been transferred with effect from 16-8-1993. The Tribunal held, for the limited purpose of waiver, that the ownership and assignment of the brand name in specified territories raised a prima facie issue under paragraph 4 of the notification and that the merits required detailed hearing. It also noted that no financial hardship had been pleaded. On that basis, the Tribunal declined total waiver but granted conditional relief.

Conclusion: Total waiver of pre-deposit was refused. The applicants were directed to deposit Rs. 40,000, and on compliance the balance pre-deposit was waived and recovery of the remaining amount stayed during pendency of the appeal.

Final Conclusion: The application for waiver was allowed only in part, with conditional relief confined to a reduced pre-deposit and stay of recovery for the balance.

Ratio Decidendi: For interim waiver of pre-deposit, the Tribunal may grant only partial relief where a prima facie case exists but total waiver is not justified and financial hardship is not shown.

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