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<h1>CESTAT grants stay on refund order due to non-compliance with Notification 56/02. Manufacturer's payment method invalid.</h1> The Appellate Tribunal CESTAT, New Delhi granted a stay of operation of the impugned order in a case where the revenue filed an application stating that a ... Stay of order - Refund The Appellate Tribunal CESTAT, New Delhi granted a stay of operation of the impugned order in a case where the revenue filed an application stating that a refund was allowed in violation of the conditions of Notification No. 56/02. The condition of the notification required the manufacturer to first utilize the whole Cenvat credit available for payment of duty on goods cleared during the month. Despite having a balance in their Cenvat account, the manufacturer paid duty through their PLA and requested a refund, which was deemed impermissible. The operation of the impugned order was stayed during the appeal process, with the appeal scheduled for regular hearing on 27-5-2008.
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