2014 (1) TMI 962 - AT - Central Excise

Waiver of pre-deposit of penalty Penalty under Rule 26 of Central Excise Rules, 2002 Held that - The appellant has not made out a prima facie case for the complete waiver of pre-deposit of the amount - the appellant directed to deposit an amount of Rupees Fifty Thousands as pre-deposit upon such submission rest of the duty to be stayed till the disposal partial stay granted.

Summary

Issues: Application for waiver of pre-deposit of penalty under Rule 26 of Central Excise Rules, 2002.

Analysis:
1. The appellant filed an application for the waiver of pre-deposit of penalty amounting to Rs.2,17,324.
2. Despite the absence of representation from the appellant, written submissions were filed requesting consideration on merit.
3. The Tribunal considered the written submissions and took them on record for review.
4. The Departmental Representative highlighted previous orders directing other assessees to deposit specific amounts in similar cases.
5. The Tribunal acknowledged the submissions made by the Departmental Representative.
6. The primary issue revolved around the penalty imposed on the appellant under Rule 26 of the Central Excise Rules, 2002 for availing ineligible CENVAT Credit.
7. The Tribunal noted that stay orders issued for other assessees penalized under the same Order-in-Original were relevant to the current case.
8. The Tribunal decided not to deviate from the view taken in previous similar cases.
9. Due to the appellant's failure to establish a prima facie case for a complete waiver of pre-deposit, the Tribunal directed the appellant to deposit Rs.50,000 within ten weeks and report compliance by a specified date.
10. Upon compliance with the initial deposit, the application for waiver of the remaining balance was allowed, and recovery of the balance amount was stayed pending the appeal's disposal.