Cenvat credit on steel items: pre-deposit relief limited after goods were treated as outside capital goods definition.

Angle, sheet, section, flat and bar goods falling under Chapters 72 and 73 were treated as outside the definition of capital goods under the Cenvat Credit Rules, 2004, which weakened the appellant's prima facie case for a full stay against recovery. On that basis, complete waiver of pre-deposit was declined and only partial relief was granted. The appellant was required to deposit 50% of the duty as pre-deposit, and recovery of the balance was stayed subject to compliance until disposal of the appeal.

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Issues: Whether the appellant had made out a case for complete waiver of pre-deposit and stay of recovery in respect of Cenvat credit availed on angle, sheet, section, flat and bar.

Analysis: The goods in question were angle, sheet, section, flat and bar, which were held to fall under Chapters 72 and 73 of the tariff. On that basis, they did not fall within the category of capital goods under the Cenvat Credit Rules, 2004. As the appellant had not shown a strong prima facie case for full waiver, only partial relief was considered justified.

Conclusion: Complete waiver of pre-deposit was declined. The appellant was directed to deposit 50% of the duty as pre-deposit, and on compliance, recovery of the balance amount was stayed till disposal of the appeal.

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