Cenvat credit may be used for pre-deposit where duty is discharged through the credit mechanism, with recovery stayed.

Where duty liability had been discharged consignment-wise through Cenvat credit, and the credit would become available again on equivalent payment from the personal ledger account, the tribunal held that the statutory scheme permitted pre-deposit from the Cenvat account. On that basis, waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery could be granted where the duty liability had been discharged through Cenvat credit and the credit would become available upon making payment from the personal ledger account.

Analysis: The order noted that the duty for the relevant period had been paid consignment-wise from the Cenvat account and that the credit would be available once an equivalent amount was paid from the personal ledger account. It was also recorded that the statutory scheme permitted pre-deposit from the Cenvat account.

Conclusion: The application for waiver of pre-deposit was allowed and stay of recovery was granted pending disposal of the appeal.

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