CENVAT credit for job work inputs and input services stays protected where the final product has suffered duty.

CENVAT credit on inputs and input services used by a job worker under Notification No. 214/1986-CE was upheld as available where the final product had suffered duty, and the cited authorities were treated as supporting that credit could not be denied merely because the goods were job-worked. On that basis, the Tribunal found a prima facie case for waiver of predeposit and ordered the demand to remain stayed during the pendency of the appeals.

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Issues: Whether the appellant was entitled to waiver of predeposit and stay of recovery of the impugned demand in respect of input service credit claimed in relation to job work undertaken under Notification No. 214/1986-CE.

Analysis: The Tribunal noted that the consistent view in the cited decisions was that where the final product had suffered duty, there was no bar on availment of CENVAT credit on inputs or input services by a job worker. The earlier Larger Bench decision and the subsequent decision following it supported the appellant's contention that the credit could not be denied merely because the goods were job-worked.

Conclusion: The appellant made out a case for waiver of predeposit, and the demand was ordered to remain stayed during the pendency of the appeals.

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