Pre-deposit waiver in excise appeal allowed where prior payment under Rule 57CC was not considered against the demand.

A stay application in an excise appeal concerned waiver of pre-deposit of confirmed duty and equal penalty where credit on transmission assemblies used in exempted tractor manufacture was denied. The appellant contended that it had already paid 8% of the sale price of the exempted tractors under Rule 57CC, and that this adjustment had been raised before the adjudicating authority but not examined. As no finding had been recorded on the claimed payment or its adjustment, the Tribunal considered it not to require immediate deposit of the full duty and penalty for hearing the appeal. The pre-deposit requirement was waived and the stay petition was allowed.

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Issues: Whether pre-deposit of the confirmed duty and equal penalty should be waived pending appeal in view of the amount already paid under Rule 57CC of the Central Excise Rules.

Analysis: The application for stay arose from a demand based on denial of credit relating to transmission assemblies used in the manufacture of exempted tractors. The applicant asserted that it had already paid 8% of the sale price of the exempted tractors under Rule 57CC. The material point noticed was that this contention had been raised before the adjudicating authority, but no finding had been recorded on it and no adjustment had been made for the amount already paid. In these circumstances, the Tribunal found it appropriate not to insist on immediate deposit of the full duty and penalty for the purpose of hearing the appeal.

Conclusion: Pre-deposit of the entire duty and penalty was waived and the stay petition was allowed.

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