Conditional waiver of pre-deposit granted where the stay issue was arguable and revenue protection justified interim relief.

In a stay application concerning penalty under Rule 26 of the Central Excise Rules, 2002, the Tribunal found the issue arguable on the appellant's alleged receipt and disposal of goods without duty-paying documents, but no basis for complete waiver of pre-deposit was made out. Conditional relief was therefore granted to protect revenue interests pending appeal. The appellant was directed to deposit Rs. 10,000 within eight weeks, and on compliance the balance pre-deposit was waived and recovery stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit of the penalty imposed under Rule 26 of the Central Excise Rules, 2002, and stay of recovery pending appeal.

Analysis: The matter was considered at the stay stage on the basis of the evidence on record and the appellant's role in receipt and disposal of the goods without duty paying documents. The Tribunal found that the issue was arguable and that no case for complete waiver had been made out. At the same time, it held that conditional relief was appropriate.

Conclusion: Complete waiver of pre-deposit was declined. The appellant was directed to deposit Rs. 10,000 within eight weeks, and on such compliance the balance pre-deposit was waived and recovery stayed till disposal of the appeal.

Final Conclusion: The stay application was allowed only to the extent of granting conditional waiver and interim protection against recovery of the balance amount.

Ratio Decidendi: In a stay matter, complete waiver may be refused where the issue is only arguable, but conditional relief can be granted to secure the interests of the revenue pending appeal.

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