Conditional pre-deposit waiver granted for central excise penalties, with limited deposit required and balance stayed pending appeal.

Conditional waiver of pre-deposit was granted in relation to penalties under the Central Excise Act and Rules. The penalty under Section 11AC was stayed because the demand period and the stage of application of that provision made immediate deposit inappropriate. The plea for full waiver of the Rule 209A penalty based on BIFR status was not accepted, but the appellant's financial condition and prima facie material indicating knowledge of clandestine removal justified partial interim relief. The appellant was required to deposit a limited amount, and the balance pre-deposit was waived pending final disposal.

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Issues: Whether pre-deposit of the penalty imposed under Section 11AC of the Central Excise Act, 1944 and Rule 209A of the Central Excise Rules, 1944 should be waived pending disposal of the appeal.

Analysis: The penalty under Section 11AC was stayed in view of the period of demand and the stage at which the provision became applicable. As regards the penalty under Rule 209A, the plea based on BIFR status was not accepted as a ground for waiver. However, considering the appellant's financial condition and the prima facie material indicating knowledge of clandestine removal, conditional relief was granted by directing a limited pre-deposit and waiving the balance pending final hearing.

Conclusion: The appellant obtained only partial interim relief by way of waiver of the balance pre-deposit, subject to deposit of Rs. 50,000/- against the Rule 209A penalty, while the remaining amount stood waived until final disposal.

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