Prima facie case in excise stay proceedings secured substantial pre-deposit waiver and protection from recovery pending appeal.

In a stay application against a central excise demand, the Tribunal found a prima facie case for substantial waiver of pre-deposit and stay of recovery on the material filed by the assessee, including declarations, correspondence and submissions disputing duty liability. With no effective response from the Revenue to the earlier direction, the assessee's position on the likely duty exposure was accepted at the interim stage. The Tribunal directed the assessee to make a reduced deposit within the stipulated time, and the balance of duty and penalty remained stayed pending appeal.

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Issues: Whether, in a stay application arising from a large central excise demand, the assessee had made out a prima facie case for substantial waiver of pre-deposit and stay of recovery.

Analysis: The applications were considered on the material placed by the assessee, including declarations, correspondence, and submissions disputing the duty liability. In the absence of any effective response from the Revenue to the Tribunal's earlier direction, the assessee's plea that the duty exposure would not exceed Rs. 2 crores was accepted at the interim stage. The balance of duty and penalty was directed to remain stayed upon deposit of Rs. 2 crores within the stipulated time.

Conclusion: The assessee obtained substantial interim relief by reduction of the pre-deposit and waiver of the balance recovery pending appeal.

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