Cenvat credit on capital goods kept on leased premises justified prima facie stay of recovery and waiver of pre-deposit.

Waiver of pre-deposit and stay of recovery were granted in a dispute over denial of Cenvat credit on capital goods, because the goods were not installed in the registered factory but were said to be in the appellant's possession on leased premises. At the stay stage, the Tribunal found the cited precedent prima facie supported the appellant's claim and held that the issue required fuller examination in the appeals. Recovery of the duty and penalty demand was therefore stayed until disposal of the appeals.

---

---

Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of duty and penalty demand arising from denial of Cenvat credit on capital goods.

Analysis: The capital goods were not installed in the appellant's registered factory premises, but they were stated to be in the appellant's possession and kept on leased premises taken from another concern. On the material available at the stay stage, the Tribunal found that the precedent relied upon by the appellant prima facie supported its case and that the dispute required further consideration in the appeals.

Outcome: Waiver of pre-deposit was granted and recovery of the disputed amounts was stayed till disposal of the appeals.

---