Partial pre-deposit and interim stay granted where Rule 26 applicability to a company remained debatable

The Tribunal considered whether the appellant should receive waiver of pre-deposit of the balance penalty and stay of recovery pending appeal. It found the applicability of Rule 26 of the Central Excise Rules, 2002 to a company to be a debatable question, supported by a Larger Bench view under the pari materia Rule 209A of the Central Excise Rules, 1944. As the issue required deeper examination at final hearing, the Tribunal did not finally resolve it at the stay stage. It directed a partial pre-deposit and granted interim protection against recovery of the remaining amount until disposal of the appeals.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of the balance penalty amounts and stay of recovery pending disposal of the appeals.

Analysis: The Tribunal noted that the appeal raised a debatable question regarding the applicability of Rule 26 of the Central Excise Rules, 2002 to a company, and that a Larger Bench view under the pari materia Rule 209A of the Central Excise Rules, 1944 supported the appellant's contention. At the same time, the Tribunal found that the issue required deeper consideration at final hearing and that the matter could not be finally concluded at the stay stage. Balancing these considerations, it directed a partial pre-deposit and granted interim protection for the balance.

Conclusion: The appellant was granted waiver of pre-deposit for the balance amount subject to deposit of Rs. 50,000, and recovery of the remaining amount was stayed till disposal of the appeals.

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