Pre-deposit waiver and stay of recovery granted where a strong prima facie case and undue hardship were shown.

Waiver of pre-deposit was granted and recovery of central excise duty and penalty was stayed pending appeal because the appellants showed a strong prima facie case and immediate deposit would cause undue hardship. The Tribunal considered the dispute on the place of removal, including the relevance of railway receipts and the supply arrangement, and found that interim relief was justified on the facts presented.

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Issues: Waiver of pre-deposit and stay of recovery of central excise duty and penalty pending appeal.

Analysis: The Tribunal found that the appellants had made out a strong prima facie case for purposes of interim relief. On the facts placed before it, the Tribunal considered the dispute concerning the place of removal and the relevance of the railway receipts and supply arrangements, and was satisfied that insistence on immediate deposit would cause hardship during the pendency of the appeal.

Conclusion: The application for waiver of pre-deposit was allowed and recovery of the duty and penalty was stayed during pendency of the appeal.

Ratio Decidendi: Where the appellant establishes a strong prima facie case and interim deposit would cause undue hardship, recovery may be stayed pending appeal.

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