Compounded levy duty dispute: Tribunal required pre-deposit of admitted excise duty, while staying recovery of the balance demand.

Under the compounded levy scheme for hot re-rolled steel products, the Tribunal noted that duty had been fixed under the Central Excise Act and the capacity determination rules, while the assessee had not paid duty for the relevant months despite claiming factory closure after electricity disconnection. At the stay stage, the Tribunal treated the admitted duty for two months as payable and required a pre-deposit of that amount, but granted waiver and stay for the remaining confirmed demand.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in respect of the confirmed excise demand arising from non-payment of duty after disconnection of electricity supply.

Analysis: The unit was engaged in manufacture of hot re-rolled steel products and was governed by the compounded levy scheme under section 3A of the Central Excise Act, 1944 and the relevant capacity determination rules. The record showed that duty had been fixed and that the appellant had not paid the duty for the relevant months, though the appellant asserted closure of the factory for want of power. The Tribunal accepted that the appellant had a liability for the admitted duty amount covering two months and considered that amount payable at the stay stage, while the balance of the confirmed demand could be protected by waiver and stay.

Conclusion: Complete waiver was not granted. The appellant was required to pre-deposit the admitted duty amount of Rs. 28,450, and waiver of the balance demand with stay of recovery was granted.

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