CENVAT credit on plastic crates upheld as prima facie admissible, justifying complete waiver and stay of recovery.

CENVAT credit on plastic crates used in or in relation to the manufacture of beverages was treated as admissible, following an earlier coordinate Bench decision that had relied on a Larger Bench view. As no contrary authority was produced by the Revenue, the Tribunal held that the appellant had made out a prima facie case for complete waiver of the dues adjudged and stay of recovery during pendency of the appeals.

---

---

Issues: Whether the appellant had made out a prima facie case for waiver of the demand and stay of recovery in respect of CENVAT credit taken on plastic crates used in or in relation to the manufacture of beverages.

Analysis: The Tribunal noted that the same issue had already been decided in an earlier coordinate Bench decision, which had followed the Larger Bench view that CENVAT credit on plastic crates used in the manufacture of beverages is admissible. No contrary authority was produced by the Revenue. On that basis, the Tribunal found that the appellant had established a prima facie case for complete waiver of the dues adjudged.

Conclusion: The appellant was entitled to total waiver of the dues adjudged and stay of recovery during pendency of the appeals.

---