Pre-deposit waiver for penalty under Central Excise Rules granted on a prima facie case, with recovery stayed pending appeal.

A pre-deposit waiver was considered for penalty imposed under Rule 25 of the Central Excise Rules, 2002 in relation to a refund claim dispute. On the material placed, a prima facie case was found for waiver, so the Tribunal allowed waiver of pre-deposit of the penalty amount and stayed recovery of the penalty until disposal of the appeal. The operative effect was that enforcement of the penalty was kept in abeyance pending the appeal.

---

---

Issues: Whether pre-deposit of the penalty imposed under Rule 25 of the Central Excise Rules, 2002 deserved waiver and recovery of the penalty deserved stay pending disposal of the appeal.

Analysis: The refund claim rejection was under challenge before the Tribunal, and the penalty had been imposed for filing the refund claim. On the material placed, a prima facie case was made out for considering waiver of pre-deposit.

Outcome: The application for waiver of pre-deposit of the penalty amount was allowed and recovery of the penalty was stayed till disposal of the appeal.

---