Remand proceedings cannot be used to enhance penalty; recovery was stayed without insisting on pre-deposit.

In remand proceedings arising from the assessee's appeal, enhancement of penalty was held impermissible and that portion of the adjudication order was treated as illegal. The Tribunal also noted the assessee's claim that the entire amount had been paid and that a substantial part had not been properly taken into account, requiring further examination. On those facts, it found no justification to insist on any pre-deposit and stayed recovery of the duty and penalty.

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Issues: Whether, in remand proceedings arising from the assessee's appeal, the penalty could be enhanced and whether recovery of the duty and penalty should be stayed without insisting on pre-deposit.

Analysis: The Tribunal recorded that enhancement of penalty in remand proceedings ordered on the assessee's appeal was not permissible and treated that part of the adjudication order as illegal. It also noticed the assessee's claim that the entire amount had been paid and that a substantial part had not been duly taken into account, holding that these aspects required examination. In view of these circumstances, it found no justification to direct any pre-deposit.

Conclusion: The stay application was accepted and recovery of the duty and penalty was stayed.

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