Cenvat credit dispute: prima facie entitlement, revenue neutrality, and waiver of pre-deposit pending appeal.

Pre-deposit of Cenvat credit demand, interest and penalties was waived because the claim to credit on used moulds and dies received from the supplier could not be rejected at the prima facie stage by re-examining the supplier's assessment without jurisdictional scrutiny of that assessment. The dispute was also treated as revenue neutral, which supported a strong prima facie case for interim protection. Recovery was stayed pending disposal of the appeals.

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Issues: Whether the requirement of pre-deposit of the Cenvat credit demand, interest and penalties should be waived and recovery stayed pending disposal of the appeals.

Analysis: The availability of Cenvat credit on used moulds and dies received from the supplier could not, at the prima facie stage, be denied by reviewing the supplier's assessment unless that assessment itself was examined by the jurisdictional authorities. The dispute was also treated as revenue neutral. On that basis, a strong prima facie case was found for interim relief.

Conclusion: The requirement of pre-deposit was waived and recovery was stayed till disposal of the appeals.

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