Penalty enhancement for the same offence was treated as unwarranted, supporting waiver of pre-deposit and stay of recovery.

Where penalty had already been imposed for an offence, a subsequent notice seeking enhancement of penalty for the same offence was treated as unwarranted for interim purposes. On that basis, the applicant was found to have made out a prima facie case for protection against recovery. Waiver of pre-deposit of the penalty was granted and recovery was stayed until disposal of the appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery of the penalty imposed under Section 84 of the Finance Act, 1994, in the circumstances where a further show cause notice sought enhancement of penalty for the same offence.

Analysis: The Tribunal noted that penalty had already been imposed in the earlier order-in-original and that the subsequent proceedings sought enhancement of penalty for the very same offence. On that basis, the Tribunal held that the current proceedings were not warranted and that the applicant had established a prima facie case for interim protection.

Outcome: Waiver of pre-deposit of the penalty was granted and recovery was stayed till disposal of the appeal.

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