Appellate Tribunal grants stay on recovery of dues & penalties in CENVAT Credit case

The Appellate Tribunal CESTAT AHMEDABAD granted a stay on the recovery of confirmed dues and penalties in a case concerning CENVAT Credit under Rule 6(3) of CENVAT Credit Rules, 2004 related to Pressmud generated during the manufacture of V.P. Sugar. The Tribunal found that the appellant had established a prima facie case for a complete waiver of dues and penalties based on the marketability of the product 'pressmud' as argued by the Revenue. The decision was pronounced by Mr. H.K. Thakur, granting a stay on recovery until the appeal's disposal.

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Issues involved:
- CENVAT Credit under Rule 6(3) of CENVAT Credit Rules, 2004 with respect to Pressmud generated during the manufacture of V.P. Sugar.

Analysis:
The judgment by the Appellate Tribunal CESTAT AHMEDABAD dealt with a stay application against OIA No. CCEA-SRT-II/SSP-27/2013-14 regarding the issue of CENVAT Credit under Rule 6(3) of CENVAT Credit Rules, 2004 concerning Pressmud generated during the manufacture of V.P. Sugar. The appellant's representative cited judgments from other Benches where stays were granted for similar products to support their case.

The Revenue's representative argued that post-amendment of Section 2(d) of the Central Excise Act, 1944, the product in question became excisable. They referred to judgments from the Honorable Supreme Court to establish that the product was marketable and should be considered a manufactured product, supporting the order passed by the Commissioner (Appeals).

After hearing both sides, the Tribunal noted that the product 'pressmud' was marketable according to the Revenue. Following the precedent set by the referenced case-laws, the Tribunal found that the appellant had established a prima facie case for a complete waiver of confirmed dues and penalties. Consequently, a stay was granted on the recovery of the confirmed dues and penalties until the appeal's disposal. The decision was pronounced in court by Mr. H.K. Thakur, the presiding judge.

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