Pre-deposit waiver in central excise scrap dispute granted after connected matter received stay under Wyeth Laboratories principle

Waiver of pre-deposit was granted in a pending central excise dispute because an identical issue had already been stayed in a connected matter, and that earlier stay had been based on the Larger Bench ruling in Wyeth Laboratories Ltd. The dispute concerned the excise treatment of scrap cleared as waste and scrap, including Modvat reversal and the applicable excise rules. In light of the existing stay on the same issue, recovery proceedings were stayed and the appellant was relieved of the pre-deposit requirement.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery proceedings in the pending central excise dispute.

Analysis: The application was considered in the light of the fact that an identical issue had already been granted stay in a connected matter, and that the earlier stay order had followed the Larger Bench decision in Wyeth Laboratories Ltd. The dispute concerned the duty treatment of scrap cleared as waste and scrap, including the applicability of Modvat reversal and the cited excise rules.

Conclusion: Stay was granted and the pre-deposit requirement was waived in favour of the appellant.

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