MRP-based excise valuation dispute led to waiver of pre-deposit and stay of recovery pending appeal.

In a stay application concerning differential duty and penalty, CESTAT held that the appellants had made out a case for interim protection against recovery pending appeal. The dispute arose from assessment under section 4A of the Central Excise Act, 1944 for Chapter 33 goods, where the Department relied on a higher MRP printed on the pack even though it had been struck off, while the appellants contended that only the revised MRP survived. On that basis, the Tribunal granted waiver of pre-deposit and stayed recovery of duty and penalty during the appeal.

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Issues: Whether, in a stay application arising from an order demanding differential duty and imposing penalty, the appellants were entitled to waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The dispute concerned assessment under section 4A of the Central Excise Act, 1944 on goods falling under Chapter 33 of the Central Excise Tariff Act, 1985. The Department treated the higher MRP printed on the pack as the assessable value notwithstanding that it was struck off, while the appellants contended that once the higher price was scored off only one MRP remained. At the interlocutory stage, the Tribunal found that the appellants had made out a case for protection against recovery during the appeal.

Outcome: Waiver of pre-deposit was granted and recovery of duty and penalty was stayed during the pendency of the appeal.

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