CENVAT credit reversal supports waiver of pre-deposit and stay of recovery for interest and penalty demands.

Waiver of pre-deposit and stay of recovery were granted in a CESTAT Mumbai matter concerning alleged wrongful availment of CENVAT credit on service tax paid for insurance premium for retired employees. The Tribunal noted that the appellant had already reversed the credit and, on that basis, extended interim relief against the interest and penalty demands pending disposal of the appeal.

---

---

Issues: Whether waiver of pre-deposit and stay of recovery should be granted in respect of the interest and penalty arising from alleged wrongful availment of CENVAT credit on service tax paid for insurance premium for retired employees.

Outcome: The appellant having already reversed the credit, the Tribunal granted waiver of pre-deposit of the interest and penalty and stayed recovery during the pendency of the appeal.

---