Double recovery under Central Excise law barred where amount already deposited under Rule 57CC, with recovery stayed on interim relief.

Unconditional waiver of pre-deposit and stay of recovery were granted on a prima facie view that the amount collected from customers had already been deposited under Rule 57CC and could not be recovered again under Section 11D of the Central Excise Act. The Tribunal noted that the appellant had made the 8% payment in respect of common inputs used in dutiable and non-dutiable final products, and treated the earlier decision relied on as supporting interim relief. The operative effect was that recovery remained stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to unconditional waiver of pre-deposit and stay of recovery on the ground that the amount recovered from customers had already been deposited under Rule 57CC and was, prima facie, not recoverable again under Section 11D of the Central Excise Act.

Analysis: The appellant had already deposited 8% of duty in terms of Rule 57CC of the Central Excise Rules on the basis that common inputs were used for dutiable and non-dutiable final products. The amount sought to be recovered under Section 11D was the same amount collected from customers and, on a prima facie view, it was not required to be paid again to the Government. The Tribunal also found prima facie support in the earlier decision relied upon by the appellant, and therefore treated the matter as one in favour of the assessee for interim relief.

Conclusion: Unconditional waiver of the entire pre-deposit was granted and recovery was stayed till disposal of the appeal.

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