Cenvat credit on CVD for reimported goods: prima facie eligibility supported waiver of pre-deposit and stay of recovery.

In a dispute on eligibility to Cenvat credit for CVD paid on imported goods originally exported, the tribunal noted that the appellant had discharged CVD on importation and that Notification No. 94/96-Cus. required such duty to be paid on importation. On that basis, the amount paid as CVD was found prima facie eligible for Cenvat credit, and the record disclosed a prima facie case for interim relief. The pre-deposit of the confirmed demand, interest and penalty was waived, and recovery of the balance dues was stayed until disposal of the appeal.

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Issues: Whether pre-deposit of the confirmed demand, interest, and penalty was liable to be waived in a case concerning eligibility to Cenvat credit of CVD paid on imported goods originally exported.

Analysis: The appellant had discharged CVD on the imported goods. Notification No. 94/96-Cus. indicated that such duty was required to be paid on importation of the goods. On that basis, the amount paid as CVD was found, prima facie, eligible for availment as Cenvat credit. The record therefore disclosed a prima facie case for grant of interim relief.

Conclusion: The pre-deposit was waived and recovery of the balance dues was stayed till disposal of the appeal.

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