R.M. LODHA, J. Central Excise Act, 1944, s. 35F Rule. Returnable forthwith. Mr. Kamlakar Sharma, Asstt. Solicitor General waives service for respondents. Keeping in view controversy raised in writ petition, we dispose of matter finally at this stage. 2 . Pursuant to show-cause notice dt. 5th Sept., 2006 for short paid service-tax, after hearing petitioner, order came to be passed by Asstt. Commr., Central Excise Department, Alwar directing petitioner to deposit service-tax amounting to Rs. 2,75,042 for being not entitled to benefit of notification dt. 1st March, 2005. Asstt. Commr. imposed penalty of Rs. 2,75,042 under s. 76 of Finance Act, 1994 and also imposed penalty in same amount under s. 78 of that Act. Asstt. Commr. also imposed penalty of Rs. 1,000 under s. 77of Act as it failed to submit ST-3 return. 3. Aggrieved by order of Asstt. Commr. passed on 29th May, 2007, appeal was preferred by petitioner to CCE(A). petitioner also applied for waiver of pre-deposit and for stay of operation of order passed by Asstt. Commr. 4 . CCE(A) vide his order dt. 8th Oct., 2007 directed petitioner to deposit sum of Rs. 2,75,042 by 22nd March, 2007 (sic), failing which it was observed that appeal would stand rejected for want of compliance. petitioner did not comply with order dt. 8th Oct., 2007 and on other hand challenged legality and correctness thereof by filing this writ petition. 5. Having considered entire matter after hearing parties, we are of view that petitioner had been able to make out case for partial waiver of pre-deposit. It is not that petitioner has no case at all in appeal. As regards financial condition, counsel for petitioner placed before us petitioner s balance sheet of year 2005-06 which shows liabilities and assets thus : "M/s Hans Colour Lab Manni Ka Bar, Church Road, Alwar Date 1st April, 2005 to 31st March, 2006 Balance sheet year 2005-06 Liabilities Sch. Amount Assets Sch. Amount Shri Fixed Ganesh Ji 11.00 D 5,27,801.00 assets assets Maharaj Proprietors Sundry 3,93,374.32 E 26,112.88 Capital A/c debtors Unsecured Closing B 6,27,000.00 F 4,34,938.45 loans stock Cash & bank balance Sundry 65,507.39 C 45,974.40 Loan & G creditors advance 12,000.00 security security RSEB Alwar Total 10,66,359.72 10,66,359.72" 6 . It, thus, appears that petitioner has small colour laboratory and by asking it to deposit amount of Rs. 2,75,042, its right of having correctness of order passed by Asstt. Commr. examined by appellate authority would be lost. We are, thus, satisfied that 50 per cent of amount of Rs. 2,75,042 deserves to be waived. Consequently, we dispose of this writ petition by following order : (i) Subject to petitioner s depositing amount of Rs. 1,37,521with CCE(A)-I within two weeks from today, order dt. 26th Oct., 2007 passed in Appeal No. 189/(RKS)ST/Jpr-I/2007 shall stand set aside and appeal would be restored to file of CC&CE(A)-I, Jaipur. (ii) order dt. 8th Oct., 2007 also stands modified in terms aforestated. (iii) On other hand, if deposit in sum of Rs. 1,37,521 is not made by petitioner within aforestated time, orders dt. 8th Oct., 2007 and 26th Oct., 2007 shall stand as it is. No costs. *** HANS COLOUR LAB & STUDIO v. UNION OF INDIA