Prima facie case for pre-deposit waiver was not shown, so only partial interim relief was granted on CENVAT credit dispute.

In a pre-deposit and stay application, the Tribunal held that the appellant had not shown a prima facie case for complete waiver of duty and penalty arising from CENVAT credit on rails treated as capital goods and inputs, especially since the rails were also capitalised in the accounts and balance sheet. It therefore declined full waiver and granted only partial interim relief by directing a specified deposit. On compliance, the remaining demand was to be kept in abeyance and recovery stayed during the appeal.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit of the duty and penalty demand and stay of recovery during the pendency of the appeal.

Analysis: The demand arose from CENVAT credit taken on rails treated by the appellant as capital goods and inputs. The rails had also been capitalised in the accounts and balance sheet. On that basis, the appellant failed to establish a case for total waiver of the pre-deposit sought. The Tribunal therefore found it to grant only partial interim relief by directing a deposit of a specified amount and keeping the balance in abeyance on compliance.

Conclusion: No complete waiver of pre-deposit was granted. The appellant was directed to deposit Rs. 9,00,000, and upon compliance, the remaining dues were to stand waived and recovery stayed during the appeal.

Final Conclusion: The stay application was disposed of by granting limited conditional relief, with the balance demand protected pending the appeal.

Ratio Decidendi: In a pre-deposit/stay application, where the appellant does not establish a prima facie case for full waiver, the Tribunal may direct partial deposit and grant consequential interim protection only on compliance.

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