Pre-deposit waiver in central excise penalty dispute refused in full, with partial deposit ordered and recovery stayed.

A pre-deposit waiver request concerning a penalty under Rule 209A of the Central Excise Rules, 1944 was considered in a dispute arising from the drawal of copper wire from copper rods. The Tribunal treated the underlying manufacture question as still arguable on the record, but held that the controversy did not justify complete waiver of deposit. It directed deposit of Rs. 20,000, and on compliance the balance penalty was waived for pre-deposit purposes and recovery of the remaining amount was stayed during the appeal.

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Issues: Whether waiver of pre-deposit of the penalty amount was justified, and whether recovery of the balance penalty should be stayed during the pendency of the appeal.

Analysis: The applicant challenged the penalty imposed under Rule 209A of the Central Excise Rules, 1944 and sought complete waiver of pre-deposit. The Tribunal noted that the dispute related to drawal of copper wire from copper rods and that the question whether such activity amounted to manufacture was not finally settled. On the record before it, the Tribunal considered the controversy to be arguable, but found that some deposit was still warranted.

Conclusion: Complete waiver was declined. The applicant was directed to deposit Rs. 20,000, and on such deposit the balance penalty was waived for pre-deposit purposes and recovery of the balance amount was stayed during the pendency of the appeal.

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