Tribunal grants waiver & stay for duty, interest, penalty. Upholds appellant's CENVAT credit claim under Rule 3.

The Tribunal granted waiver of pre-deposit and stay of recovery for duty, interest, and penalty denied to the appellant. The appellant satisfied legal requirements by availing CENVAT credit based on duty-paid invoices, meeting Rule 3 of the CENVAT Credit Rules, 2004. The Tribunal emphasized that as long as the inputs were duty-paid and covered by valid invoices, the benefit of CENVAT credit cannot be denied, leading to the decision in favor of the appellant.

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Issues: Denial of CENVAT credit on non-dutiable inputs

In this case, the appellant sought waiver of pre-deposit and stay of recovery for an amount of duty, interest, and penalty denied by the authorities below. The Revenue contended that the inputs on which the credit was taken were non-dutiable, and action was being taken against the supplier. The learned DR argued that the appellant must establish that duty was leviable on the inputs under the Central Excise Act. On the other hand, the appellant claimed they satisfied legal requirements by availing CENVAT credit based on duty-paid invoices. The appellant's counsel asserted that as long as the inputs were duty-paid and covered by proper invoices, the benefit cannot be denied.

The Tribunal agreed with the appellant's submissions, noting that the credit was taken based on valid invoices showing duty paid on the inputs. The appellant met the requirements of Rule 3 of the CENVAT Credit Rules, 2004, by availing credit of duty paid by the supplier. The crucial aspect was that the inputs were duty-paid and covered by valid invoices, satisfying the conditions for CENVAT credit. The Tribunal emphasized that the benefit of CENVAT credit cannot be denied to the appellant based on the facts presented. Therefore, the Tribunal granted waiver of pre-deposit and stay of recovery for the amounts adjudged against the appellants.

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