Unconditional stay and pre-deposit waiver granted where old railway rails were treated as non-duty paid goods.

Unconditional stay and waiver of pre-deposit under Section 35-F were considered in a dispute over duty demand on old and unserviceable rails treated as non-duty paid goods. The Court noted that similar interim relief had been granted in earlier matters on comparable facts and stressed consistency in interim orders. On the materials then available, it found that the petitioner's purchase of rails from the Railway Department did not justify denial of similar relief. The order directing deposit was quashed, and the petitioner was treated as entitled to unconditional stay and waiver of pre-deposit.

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Issues: Whether the petitioner was entitled to unconditional stay and waiver of pre-deposit under Section 35-F of the Central Excise Act in respect of the duty demand arising from purchase of old and unserviceable rails treated as non-duty paid goods.

Analysis: The Tribunal had partially rejected the stay-cum-waiver application and directed deposit, but the Court noted that in earlier matters involving similar facts the Tribunal had granted unconditional stay. It emphasised the need for uniformity in interim orders and found that the petitioner had purchased old and unserviceable rails from the Railway Department, making denial of similar relief unjustified on the materials then available.

Conclusion: The petitioner was held entitled to unconditional stay and waiver of pre-deposit, and the order directing deposit was quashed.

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