Condonation of delay and pre-deposit waiver: illness explained the filing delay, but financial hardship was not proved for full waiver.

A 14-day delay in filing the appeal was condoned because the delay was explained by the illness of the applicant's manager. On pre-deposit, the appellant sought full waiver on the basis of financial hardship, but the documents produced were found insufficient to establish hardship merely because the unit had been declared a relief undertaking. Full waiver was therefore refused, and conditional relief was granted by requiring a partial deposit, with recovery of the balance duty stayed upon compliance.

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Issues: (i) Whether the 14-day delay in filing the appeal should be condoned. (ii) Whether the appellant was entitled to waiver of the full pre-deposit on the ground of financial hardship.

Issue (i): Whether the 14-day delay in filing the appeal should be condoned.

Analysis: The delay was attributed to the illness of the applicant's manager, and the explanation was accepted.

Conclusion: The delay was condoned.

Issue (ii): Whether the appellant was entitled to waiver of the full pre-deposit on the ground of financial hardship.

Analysis: The demand arose from Modvat credit taken on documents issued by an unregistered dealer. The plea of hardship was based on the unit having been declared a relief undertaking, but the notification produced was held insufficient by itself to establish financial hardship warranting complete waiver.

Conclusion: Full waiver of pre-deposit was refused. The appellant was directed to deposit Rs. 5 lakhs, and recovery of the balance duty was stayed upon such deposit.

Final Conclusion: The appeal application succeeded only in part, with delay condoned and conditional relief granted on pre-deposit.

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