Conditional pre-deposit in excise dispute: Tribunal grants partial stay of recovery pending appeal

In a stay and waiver application arising from a Central Excise duty demand and equal penalty under Section 11AC, the Tribunal considered that the dispute was already covered by a similar issue in the appellant's own case and that comparable interim relief had been granted earlier. It therefore granted only conditional protection, requiring a pre-deposit of 7.5% of the confirmed duty while staying recovery of the balance during pendency of the appeal. The relief was thus limited rather than complete, and the appeal was allowed to proceed on that condition.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the duty and penalty demand pending appeal.

Analysis: The application arose from a demand of duty and an equal penalty under Section 11AC of the Central Excise Act, 1944. The Tribunal noticed that the dispute involved a similar issue in the appellant's own case and that, in comparable proceedings, a direction had already been made for partial deposit. On that basis, the Tribunal considered it appropriate to grant only conditional relief by requiring a limited deposit of 7.5% of the confirmed duty, while protecting the appellant against recovery of the remaining dues during pendency of the appeal.

Conclusion: The appellant was granted partial waiver subject to deposit of 7.5% of the confirmed duty, and recovery of the balance demand remained stayed during the appeal.

Final Conclusion: The application was disposed of by granting limited interim protection rather than complete waiver, leaving the appeal to proceed on the stated condition.

Ratio Decidendi: In a stay or waiver application, where the dispute is already covered by a similar issue and comparable interim relief has been granted, the Tribunal may order only partial pre-deposit and stay recovery of the balance pending appeal.

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