Purchaser liability for central excise dues lacked statutory basis, justifying waiver of pre-deposit and stay relief.

A purchaser of an industrial unit was treated as having a strong prima facie case against recovery of central excise duty and penalty where no provision parallel to Rule 230 of the Central Excise Rules existed in the Act or Rules to fasten such liability on the buyer after acquisition of the unit. On that basis, the Tribunal granted waiver of the entire pre-deposit of duty and penalty and allowed the stay petition.

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Issues: Whether the applicant was entitled to waiver of pre-deposit of duty and penalty in a case involving recovery of central excise dues from the purchaser of an industrial unit after purchase of the unit.

Analysis: The unit had been purchased on 22-05-2003. At that time, the Tribunal found that no provision parallel to Rule 230 of the Central Excise Rules existed in the Central Excise Act or the Rules to fasten liability on the purchaser. The applicant therefore showed a strong prima facie case against recovery of the duty and equal penalty demanded.

Conclusion: Waiver of the entire pre-deposit of duty and penalty was granted and the stay petition was allowed.

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