Exemption notification wording and Cenvat credit issues supported waiver of pre-deposit and stay of recovery in appeal.

In stay proceedings concerning exemption under Notification No. 8/2003-C.E., the tribunal found a prima facie case that an earlier decision under a different notification could not be applied mechanically because the wording had changed. It also noted that the cited ruling on denial of Cenvat credit did not directly govern denial of exemption under this notification. On that basis, pre-deposit of the adjudged dues was waived and recovery of the demand was stayed until disposal of the appeal.

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Issues: Whether, in the stay proceedings, pre-deposit of the adjudged dues was required to be made and recovery of the demand stayed.

Analysis: The applicant was clearing unbranded goods under Notification No. 8/2003-C.E. dated 01-03-2003 and also clearing branded goods on payment of duty while taking Cenvat credit on inputs used therein. A prima facie case was found that the earlier decision rendered in the context of a different notification could not be mechanically applied because of the changed wording of Notification No. 8/2003-C.E., and the cited decision on Cenvat credit denial did not directly govern denial of exemption under the said notification.

Conclusion: Pre-deposit was waived and recovery of the dues was stayed till disposal of the appeal.

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