Pre-deposit waiver for excise penalty denied where delayed payment was undisputed and financial hardship was not shown.

In a dispute over late payment of central excise duty under the compounded levy scheme, the Tribunal considered whether the appellant had shown a prima facie case for complete waiver of pre-deposit of penalty and whether financial hardship justified relief. The delay in payment was undisputed, and the Tribunal noted that the statutory framework under the Central Excise Rules supported imposition of penalty for delayed payment. It also found that the financial material did not establish undue hardship, as the appellant had earned income and the carried-forward loss was limited. Complete waiver of pre-deposit was therefore declined, and partial deposit was directed with balance stay on compliance.

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Issues: Whether the appellant had made out a case for waiver of pre-deposit of the penalty and whether any partial deposit should be directed on the ground of financial hardship.

Analysis: The dispute arose from late payment of central excise duty under the compounded levy scheme. The appellant relied on prior payment of duty with interest and on a decision suggesting that penalty was not imposable, while the Revenue relied on the statutory mandate under the Central Excise Rules that delayed payment attracted penalty. The Tribunal found that the delay in payment was undisputed and that a prima facie case for complete waiver of the penalty was not made out. It also found that the financial material did not establish undue hardship, since the appellant had earned income and the carried-forward loss was limited.

Conclusion: Complete waiver of pre-deposit was declined, and the appellant was directed to deposit a part of the penalty amount, with waiver and stay granted for the balance on compliance.

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