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Issues Involved: Challenge to order for pre-deposit of duty in Central Excise appeals.
Summary: The petitioner challenged an order for pre-deposit of duty in seven Central Excise appeals, arguing that relevant factors were not considered. The respondent declined to dispense with the pre-deposit, stating that a strong case alone is not sufficient for waiver unless undue hardship is proven. The Central Excises and Salt Act allows for appeals with conditions, including depositing the duty as a condition for filing an appeal. The appellate forum can dispense with the deposit if undue hardship is shown. The Supreme Court and Kerala High Court emphasized considering relevant factors, including prima facie case, in deciding on dispensing with the deposit. The High Court found that the respondent did not consider all relevant factors in the order for pre-deposit, indicating a lack of proper application of mind. The Commissioner's focus on undue hardship without considering a strong prima facie case was deemed incorrect. Financial hardship, administrative inconvenience, and a strong prima facie case are all crucial factors in deciding on dispensing with the deposit. The Court quashed the order and directed the respondent to reconsider the matter, emphasizing the need to consider all relevant factors and pass a fresh order within three months. In conclusion, the petition was finally disposed of with no costs, and all parties were instructed to act on the dictated order.
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