2001 (11) TMI 340

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....al to the Commissioner (Appeals). They had also filed therein an application under Section 35F of the Central Excise Act, 1944 praying for waiver of pre-deposit of the penalty amount and for stay of recovery thereof. That application was disposed of by the lower appellate authority as per 'Interim Stay Order' No. 28/2001 dated 7-3-2001, whereby the assessee was directed to deposit the penalty amount within two weeks and to report compliance on 19-3-2001. The 'Interim Stay Order' of the Commissioner (Appeals) was taken by the assessee to the Hon'ble High Court of Rajasthan in a writ petition which was disposed of as per Order dated 19-3-2001 which reads as under :- "The Interim Stay Order dated 7-3-2001 passed by the Commissioner (Appeals....

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....at an amount of Rs. 2 lakhs had already been deposited by the assessee. The lower appellate authority did not appreciate the fact that the Modvat credit of Rs. 6 lakhs which was alleged to have been taken in excess by the assessee in their RG 23A part-II had been debited in that account much before the show-cause notice was issued. The applicants have also stated that 'Interim Stay Order' is biased, arbitrary and harsh. They have also raised a plea of financial hardships which have allegedly resulted from recession in the industry. Ld. Advocate Sh. K.K. Anand has reiterated these grounds and prayed for waiver of pre-deposit and stay of recovery in respect of the penalty amount. Ld. JDR Sh. Hitesh Shah has opposed this prayer. 4. Bef....