Penalty enhancement on remand can justify stay and waiver of pre-deposit where a strong prima facie case exists.

After remand, the adjudicating authority enhanced the penalty in re-adjudication under Rule 173Q and Rule 571(4). The applicant argued that penalty could not be increased in remand proceedings, and the Tribunal found that contention raised a strong prima facie case. On that basis, it granted waiver of pre-deposit and stayed recovery of the penalties pending disposal of the matter.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery of the penalties imposed under Rule 173Q and Rule 571(4).

Analysis: The Tribunal noted that the matter had reached it after remand and that the adjudicating authority had enhanced the penalty in the re-adjudication proceedings. The applicant relied on the principle that penalty could not be increased in remand proceedings. On the facts and submissions, the Tribunal held that a strong prima facie case existed in favour of granting stay.

Conclusion: The stay application was allowed and the applicant obtained waiver of pre-deposit and stay of recovery.

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