Excise penalty recovery stayed pending appeal after prima facie case and time-barred duty demand were noted

Recovery of the excise penalty was stayed at the interim stage because the duty demand had already been held time-barred and the appeal required detailed hearing. The tribunal noted the rival submissions on whether penalty could survive independently of the duty demand, but left that substantive question for final disposal. On a prima facie assessment, the appellants were found to have a case for interim protection, so coercive recovery was suspended pending hearing of the appeal.

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Issues: Whether recovery of penalty imposed under the Central Excise law should be dispensed with at the stay stage, where the duty demand had already been held time-barred and the appeal required detailed hearing.

Analysis: The order records rival contentions on the permissibility of penalty despite non-sustenance of the duty demand, but reserves the substantive question for final hearing. On a prima facie assessment, the appellants were found to have a case warranting interim protection pending disposal of the appeal.

Outcome: Recovery of the penalty was stayed for the purpose of hearing of the appeal.

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