Cenvat credit reversal and notification benefit support interim protection against recovery pending appeal.

A dispute concerned whether reversal of Cenvat credit to claim the benefit of Notification No. 30/2004-C.E. entitled the appellant to protection against recovery pending appeal. On the material produced, the Tribunal formed a prima facie view that the credit had been reversed and that the notification benefit could not be denied at that stage. Recovery was therefore not to be enforced during the pendency of the appeal.

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Issues: Whether the appellant was entitled to protection against recovery during the pendency of the appeal after withdrawing Cenvat credit to avail the benefit of Notification No. 30/2004-C.E. dated 9-7-04.

Analysis: The appeal turned on a narrow question of entitlement under the notification. The appellant had reversed the credit in order to claim the notification benefit, and the testimonial produced before the Tribunal indicated that the reversal had been effected. On that basis, the Tribunal formed a prima facie view that the benefit of the notification could not be denied and that the demand should not be recovered while the appeal remained pending.

Conclusion: The appellant was held entitled to interim protection against recovery during the pendency of the appeal.

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