Pre-deposit waiver and stay granted where revised excise levy was not enforceable for the disputed earlier period.

The revised excise levy proposed in the Finance Bill, 2012 was made effective from 17.03.2012 under the Provisional Collection of Taxes Act, 1931, but the later amendment shifting from an ad valorem to a specific rate was moved only on 07.05.2012 and the Finance Act received assent on 28.05.2012. On this prima facie view, the revised levy could not be enforced for the disputed earlier period, so immediate recovery of the differential duty was not warranted. The assessee was therefore granted complete waiver of pre-deposit of duty, interest and penalty, with stay of recovery pending appeal.

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Issues: Whether the assessee had made out a prima facie case for complete waiver of pre-deposit and stay of recovery of the differential duty demanded for the period 17.03.2012 to 27.05.2012.

Analysis: The duty proposal in the Finance Bill, 2012 had been made effective from 17.03.2012 under the Provisional Collection of Taxes Act, 1931. The later amendment moved on 07.05.2012 replaced the ad valorem component with a revised specific rate, and the final Finance Act received assent only on 28.05.2012. On this prima facie view, the revised levy could not be enforced for the disputed earlier period, and the demand for that interval did not warrant immediate recovery.

Conclusion: The assessee was entitled to complete waiver of pre-deposit of duty, interest, and penalty, with stay of recovery during the pendency of the appeal.

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