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of <h1>Interim Stay Granted with Deposit Conditions and Compliance Reporting</h1> The Tribunal granted an interim stay on the condition that the applicant deposits Rs. 5 lacs within eight weeks, failing which the appeal would be ... Stay/Dispensation of pre-deposit - Cenvat/Modvat Issues:Interim stay of the order of the Commissioner and waiver of pre-deposit of Rs. 3,11,10,425/- and penalty of Rs. 15,00,000/- imposed on the applicant.Analysis:1. The applicant sought interim stay of the Commissioner's order and waiver of pre-deposit. It was acknowledged that the applicant was required to maintain separate inventory and accounts of inputs as per Rule 57-CC. Failure to comply with sub-rule (9) of Rule 57-CC led to liability to pay 8% of the price of exempt final products. The applicant contended that the reversal of credit was not considered, citing relevant legal precedents.2. The Department's representative supported the Commissioner's findings, emphasizing the mandatory nature of maintaining separate inventory and accounts under Rule 57CC(9). Reference was made to a Tribunal case where reversal of modvat credit did not absolve the assessee from paying duty.3. Rule 57CC(9) explicitly mandates maintaining separate inventory and accounts without provision for credit reversal. The violation of this rule was evident in the case. The Supreme Court's decision in Chandrapur Magnet Wires (P) Ltd. v. CCE, Nagpur highlighted the importance of debiting the credit amount before removing exempted final products.4. The Tribunal noted that the reversal of credit after product removal would undermine Rule 57CC's provisions. The applicant's submission for a total waiver of pre-deposit was not accepted. An interim stay was granted on the condition that the applicant deposits Rs. 5 lacs within eight weeks, failing which the appeal would be dismissed. The waiver of the remaining amount was contingent on this deposit.5. The Tribunal directed compliance reporting on a specified date. The decision was pronounced in open court, emphasizing the importance of following the conditions set for the interim stay and waiver of pre-deposit during the appeal's pendency.
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