Pre-deposit waiver and recovery stay granted where the disputed credit issue was pending before a Larger Bench.

Waiver of pre-deposit under Section 35F was granted and recovery was stayed because the disputed credit question was already pending before a Larger Bench for authoritative determination. The Tribunal noted that hardship had already been considered by the Commissioner (Appeals) when requiring pre-deposit, and that the issue in the appeal was the same as the question referred for larger bench resolution on credit taken on invoices issued before the amendment to Rule 57G of the Central Excise Rules, 1944. Pending that authoritative decision, stay of recovery was maintained during the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted pending appeal when the disputed credit issue had already been referred to a Larger Bench.

Analysis: The Tribunal noted that the Commissioner (Appeals) had already considered hardship while requiring pre-deposit under Section 35F of the Central Excise Act, 1944. It further noted that the very question whether credit could be taken on invoices issued before the amendment to Rule 57G of the Central Excise Rules, 1944 was pending before a Larger Bench, and that the issue in the present matters was the same as the one already referred for authoritative resolution.

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

Ratio Decidendi: Where the core dispute in an appeal is already pending authoritative consideration before a Larger Bench, waiver of pre-deposit and stay of recovery may be granted pending disposal of the appeal.

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