Cenvat Credit refund recovery: total waiver refused for the demand, while interest was waived pending appeal.

In a CESTAT stay application concerning refund and recovery of Cenvat credit, the appellant sought total waiver of the demanded amount and suspension of interest. The tribunal found no prima facie case for complete waiver because the recovery arose from refund claims linked to services treated as rendered in India, and an earlier issue in the main matter had already led to adverse prima facie findings and a deposit direction. Total waiver of the demand was therefore not granted, and the duty amount was required to be deposited within six weeks. Waiver was allowed only for the interest component until disposal of the appeal.

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Issues: Whether the appellant was entitled to total waiver of the amount demanded in the impugned order in a stay application relating to refund and recovery of Cenvat credit, and whether the interest component could be waived pending disposal of the appeal.

Analysis: The amount sought to be recovered arose from refund of Cenvat credit linked to services treated as rendered in India, and a similar issue in the main matter had already resulted in adverse prima facie findings against the appellant, including a direction to deposit a substantial amount. In these circumstances, no prima facie case was made out for complete waiver of the demand. However, the interest component was not required to be secured at that stage.

Conclusion: Total waiver of the demanded amount was ed, the duty amount was required to be deposited within six weeks, and waiver was granted only in respect of the interest amount till disposal of the appeal.

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