Cenvat credit reversal dispute: prima facie duty payment justified waiver of balance pre-deposit and stay of recovery.

In a stay application concerning reversal of Cenvat credit, the tribunal treated substantial duty payment on the final products as, on a prima facie basis, sufficient to indicate reversal of any ineligible credit. On that footing, the appellant was found to have made out a case for interim protection. Waiver of the balance pre-deposit was granted and recovery of the disputed amounts was stayed until disposal of the appeals.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeals.

Analysis: The amounts demanded were towards reversal of cenvat credit, while the record showed payment of substantial duty on the final products cleared from the factory. On a prima facie view, such duty discharge was treated as amounting to reversal of the credit, if any, found ineligible, and the appellant was held to have made out a case for interim relief.

Outcome: Waiver of the balance pre-deposit was granted and recovery of the amounts involved was stayed till disposal of the appeals.

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