Duty treatment of input payments after change in use supported credit and justified stay of recovery pending appeal.

A prima facie view was taken that the amount paid on excisable inputs after the change from export production to domestic clearances constituted duty payable on the materials received, not a mere other amount, so credit was considered supportable on that basis. The cited precedent was found inapplicable on the facts. On that footing, the stay applications were allowed and recovery was stayed until disposal of the appeals.

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Issues: Whether the amount paid by the assessee on excisable inputs, after a change in use from export production to domestic clearances, could be treated as duty so as to permit credit and warrant stay of recovery.

Analysis: The Tribunal recorded a prima facie view that the amount paid was towards duty not paid and was equal to the duty payable on the materials received. It further noted that the sum was not a mere other amount, and that the cited precedent did not apply to the facts of the case.

Outcome: The stay applications were allowed and recovery was stayed till disposal of the appeals.

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