Pre-deposit waiver in central excise dispute granted on a strong prima facie case, with recovery stayed pending appeal.

In proceedings before CESTAT, Mumbai, the applicants sought waiver of pre-deposit of duty and penalty demanded under Section 11D of the Central Excise Act, 1944. A strong prima facie case was found in favour of waiver, so the pre-deposit requirement for the duty and penalty was dispensed with and recovery was stayed pending appeal.

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Issues: Whether the applicants were required to make pre-deposit of the duty and penalty demanded under Section 11D of the Central Excise Act, 1944, and whether recovery should be stayed pending appeal.

Outcome: Strong prima facie case found for waiver of pre-deposit; pre-deposit of duty and penalty dispensed with and recovery stayed pending appeal.

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