Tribunal grants stay, waives pre-deposit, and halts duty recovery on exempted by-products pending appeal.

The Tribunal allowed the stay application, waived the pre-deposit requirement, and stayed the recovery of the duty amount on exempted by-products until the appeal's disposal. Previous Tribunal judgments supported the appellant's position, leading to a favorable outcome for the appellant.

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Issues:
1. Pre-deposit of duty amount on exempted by-products.
2. Applicability of earlier judgments on similar facts.
3. Interpretation of Larger Bench judgment on common inputs.
4. Consideration of Supreme Court judgments on similar cases.

Detailed Analysis:
Issue 1: The appellants were required to pre-deposit duty amount on exempted by-products. The appellant argued that they had already reversed the credit availed on the inputs used for manufacturing the by-products, thus questioning the necessity of depositing 8% of the goods' value. The Tribunal considered the appellant's grievance and relevant legal precedents.

Issue 2: The appellant referred to previous judgments where appeals were allowed in similar situations. They cited cases like M/s. Ravindra Solvent Oils Private Ltd. and M/s. JSW Steel Ltd., emphasizing that the issue was no longer res integra and was covered in their favor. The Tribunal acknowledged the relevance of these judgments and considered them in their decision.

Issue 3: The learned JCDR relied on the Larger Bench judgment in Rallies India Ltd. v. CCE, Salem, which discussed the use of common inputs for excisable and exempted products. However, the appellant argued that this judgment did not consider the Supreme Court judgment in the case of Shakumbari Sugar & Allied Industries Ltd. The Tribunal agreed with the appellant's argument and concluded that the Larger Bench decision was not applicable in this case.

Issue 4: After careful consideration of the arguments and relevant legal precedents, the Tribunal found merit in the appellant's submissions. They noted that previous Tribunal judgments affirmed by the Apex Court supported the appellant's position. Therefore, the Tribunal allowed the stay application, waived the pre-deposit requirement, and stayed the recovery of the amount until the appeal's disposal. The matter was listed for a final hearing, and no recovery was to take place until the appeal's resolution.

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