M/S. BENARA VALVES LTD. vs COMMNR. OF CENTRAL EXCISE

The Supreme Court upheld the order of the Customs Excise and Service Tax Appellate Tribunal requiring the appellants to pre-deposit 25% of the duty and penalties imposed under Section 11AC of the Central Excise Act, 1944, pending the disposal of their appeals. The Court emphasized that the discretion to grant stay must be exercised judiciously, considering the principles established in prior cases such as Silliguri Municipality v. Amalendu Das. The High Court's decision to extend the time for compliance but deny dispensation of deposit was affirmed, reinforcing the need for accountability in cases of alleged tax evasion.