Pre-deposit waiver in excise penalty matters may be limited where part payment exists and reasons support the deposit direction.

Interim relief on pre-deposit under the chewing tobacco packing machine rules and Central Excise penalty provisions was considered on a prima facie basis. The Tribunal noted that part payment had already been made during adjudication and that reasons were recorded for the pre-deposit direction. Complete waiver was declined, but only a limited further deposit was required before the balance pre-deposit was waived and recovery stayed during the appeal.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery pending the appeal.

Analysis: The application was considered in the context of the duty and penalty imposed under the Chewing Tobacco and Unmanufactured Tobacco Packing Machines Rules and the penalty provision under the Central Excise law. The Tribunal noted that the appellant had already made part payment during adjudication and that the Commissioner had recorded reasons while directing pre-deposit. Taking a prima facie view and considering the amounts already deposited, the Tribunal found it appropriate to require only a further limited deposit before granting relief against the remaining dues.

Conclusion: Complete waiver was declined. The appellant was directed to deposit a further sum of Rs. 2.10 lakhs within eight weeks, and upon such deposit, waiver of the balance pre-deposit and stay of recovery were granted during pendency of the appeal.

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