Tribunal grants stay, directs duty payment, restores appeal for further proceedings.

The Tribunal allowed the stay petition, directing the appellant to deposit the entire duty amount of Rs. 1,64,416 and comply with the specified date. Upon compliance, the appeal was to be restored to its original number for further proceedings and disposal by the Commissioner (Appeals) following natural justice principles. The case outcome favored the appellant, providing an opportunity to address the non-compliance issues and proceed with the appeal process.

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Issues Involved:
Waiver of pre-deposit of confirmed duty, appeal dismissal for non-compliance with stay order, non-discharge of duty liability, imposition of penalty under Rule 96ZQ.

Analysis:
The stay petition in this case sought waiver of pre-deposit of Rs. 1,64,416 confirmed as duty demand, along with interest and penalty of Rs. 5,94,120 under Rule 96ZQ5 of Central Excise Rules, 1944. The appeal was dismissed by the learned Commissioner (Appeals) due to non-compliance with the stay order, which required a deposit of Rs. 5,70,000 as penalty. The Tribunal found that the appeal could be decided at that stage as the issue was narrow. Consequently, the stay petition was allowed, and the appeal was taken up for decision.

The first appellate authority had dismissed the appeal for non-compliance with Section 35F provisions and the stay order, instructing the appellant to pre-deposit Rs. 5,70,000. The main issue revolved around the non-discharge of duty liability on goods for which the APC was provisionally fixed by the authorities. The lower authorities confirmed the demand and imposed a penalty under Rule 96ZQ, which was three times the duty liability confirmed. Without delving into the case's merits, the Tribunal directed the appellant to deposit the entire duty amount of Rs. 1,64,416 within four weeks and report compliance to the learned Commissioner (Appeals) by a specified date. Upon compliance, the learned Commissioner (Appeals) was instructed to restore the appeal to its original number, conduct proceedings following natural justice principles, and dispose of the case accordingly. The stay petition and appeal were disposed of based on the above directives.

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