2010 (7) TMI 587 - AT - Central Excise

Waiver of pre-deposit - Penalty - The appellant has been clearing goods under ARE-1 Procedure to SEZ Developers without payment of duty - On being pointed out by the Audit party, the appellant discharged the entire liability and subsequently filed a refund claim - Claim was rejected by the Adjudicating Authority - The rejection of refund claim is being challenged by the assessee and is pending before this bench - The imposition of penalty under Rule 25 of Central Excise Rules, 2002, for filing a refund claim cannot arise - Hence, the appellant has made out a prima facie case for the waiver of pre-deposit and recovery thereof stayed.

Summary

The Appellate Tribunal CESTAT, Bangalore allowed the assessee's stay petition, waiving the penalty imposed for filing a refund claim without a Letter of Undertaking (LUT). The rejection of the refund claim is being challenged, so the penalty under Rule 25 of Central Excise Rules, 2002 cannot apply. The waiver of the penalty amount is granted, and recovery is stayed pending appeal.