Rule 6 Cenvat Credit dispute on exempted clearances: pre-deposit waived and recovery stayed pending appeal.

After reversal of input credit attributable to exempted clearances, the dispute concerned whether the appellant still had to pay 10% of the sale price of exempted goods under Rule 6(3)(b) of the Cenvat Credit Rules, 2002. The matter also concerned stay of recovery pending appeal. The tribunal granted waiver of pre-deposit of the balance demand and penalty, and stayed recovery until disposal of the appeal.

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Issues: Whether, after reversal of input credit relatable to exempted clearances, the appellant was still required to pay 10% of the sale price of exempted goods under Rule 6(3)(b) of the Cenvat Credit Rules, 2002, and whether pre-deposit and recovery of the remaining demand and penalty should be stayed.

Outcome: The appellant was granted waiver of pre-deposit of the balance demand and penalty, and recovery was stayed pending disposal of the appeal.

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