Financial hardship justified waiver of pre-deposit and stay of excise recovery pending appeal.

Waiver of pre-deposit and stay of recovery were granted where the appellant showed prima facie financial hardship. The Tribunal accepted that the factory had remained closed for several years and that insistence on pre-deposit would cause undue hardship, despite the revenue's objection that sufficient resources were available. The dispute concerned central excise duty, equal penalty under Section 11AC of the Central Excise Act, and an additional penalty under Rule 173Q of the Central Excise Rules. Interim relief was therefore allowed and recovery of the disputed amounts was stayed pending appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending appeal on the ground of financial hardship.

Analysis: The appeal arose from a demand of central excise duty with equal penalty under Section 11AC of the Central Excise Act and further penalty under Rule 173Q of the Central Excise Rules. The Tribunal accepted the appellant's plea that its financial condition was precarious, the factory had remained closed for several years, and the materials on record showed undue hardship if pre-deposit were insisted upon. On the rival contention that sufficient resources were available, the Tribunal found the appellant's case on hardship to be prima facie established for the purpose of interim relief.

Conclusion: Waiver of pre-deposit was granted and recovery of the disputed amounts was stayed during the pendency of the appeal.

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