Deemed credit on aggregate duty supported waiver of pre-deposit where no excess entitlement or revenue loss was shown.

Deemed credit under Notification No. 6/2002-N.T. was treated as admissible on the aggregate duty of excise and additional duty, and the demand to split the credit into basic excise duty and additional duty was not accepted at the interim stage. The credit already taken was not shown to exceed the prescribed entitlement, and the matter was considered revenue neutral because the additional duty component could have been discharged through credit or cash without demonstrated net revenue loss. On that basis, a prima facie case for interim relief was made out, and waiver of pre-deposit with stay of recovery was granted.

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Issues: Whether, for the purpose of availing deemed credit under Notification No. 6/2002-N.T. dated 01-03-2002, the aggregate duty was required to be split between basic excise duty and additional duty, and whether waiver of pre-deposit was warranted.

Analysis: The notification permitted credit at the prescribed rate on the aggregate duty of excise and additional duty. The credit already taken was not shown to exceed the prescribed entitlement. The demand was also viewed as revenue neutral, since the additional duty component could have been discharged through the credit mechanism or by cash payment, with no net revenue loss demonstrated. These considerations established a prima facie case for interim relief.

Conclusion: The requirement of splitting the aggregate credit into basic and additional duty was not accepted at the interim stage, and the applicant was held entitled to waiver of pre-deposit and stay of recovery.

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