Cenvat credit dispute on used moulds: waiver of pre-deposit and stay granted on a prima facie case.

Rule 3(4) of the Cenvat Credit Rules, 2001 was examined in relation to duty demanded on the removal of used moulds during the relevant period. The appellant argued that the used capital goods were not removed "as such" within the meaning of the rule and relied on Tribunal authority supporting that construction. The order also noted that part of the demand had already been paid and that a prima facie case existed. On that basis, waiver of pre-deposit and stay of recovery were granted for the balance demand.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in respect of the duty demand raised on used moulds under Rule 3(4) of the Cenvat Credit Rules, 2001.

Analysis: The order records that the demand was based on the removal of moulds during the relevant period. The appellant contended that used capital goods were not removed "as such" within the meaning of the rule, and reliance was placed on a Tribunal decision supporting that view. The order also notes that a part of the demand had already been paid and that the appellant had a prima facie case.

Conclusion: Waiver of pre-deposit and stay of recovery were granted for the balance demand.

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