Pre-deposit relief under Rule 26 penalties followed because the alleged conduct occurred before Rule 26(2) took effect.

Pre-deposit of penalties imposed under Rule 26 of the Central Excise Rules, 2002 was dispensed with because the alleged conduct predated 01.03.2007, when Rule 26(2) was stated to have come into force. The Tribunal treated this timing distinction as material at the stay stage and relied on an earlier order granting stay in an identical invoice-without-goods situation. The stay petitions were therefore allowed unconditionally, and no pre-deposit was required for the penalties.

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Issues: Whether pre-deposit of the penalties imposed under Rule 26 of the Central Excise Rules, 2002 should be dispensed with in a stay application where the alleged conduct occurred before the introduction of Rule 26(2) with effect from 01.03.2007.

Analysis: The period involved preceded 01.03.2007, the date from which Rule 26(2) was stated to have come into force. The Tribunal treated this temporal aspect as material for the purpose of stay and followed an earlier order granting stay in an identical situation involving issuance of invoices without corresponding goods.

Outcome: The condition of pre-deposit of the penalties was dispensed with and the stay petitions were allowed unconditionally.

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