Tribunal Grants Stay Petition for Duty Waiver on Clinkers

The Tribunal granted the appellant's stay petition for waiver of pre-deposit of duty, interest, and penalty on clinkers used in manufacturing cement for international competitive biddings. The appellant's eligibility for CENVAT Credit on inputs used in cement manufacturing was acknowledged, allowing for the waiver of the amounts in question. Recovery was stayed pending appeal disposal.

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Issues:
Stay petition for waiver of pre-deposit of duty, interest, and penalty on clinkers used in manufacturing cement for international competitive biddings.

Analysis:
The Stay Petition was filed seeking waiver of pre-deposit of duty, interest, and penalty amounting to Rs.1,66,67,182/- and Rs.20,00,000/- respectively. The duty liability was confirmed on clinkers used by the appellant for manufacturing cement supplied in international competitive biddings. The counsel referred to Notification No.67/95-CE, emphasizing an exception for manufacturers of dutiable and exempted final products after complying with Rule 6 of the CENVAT Credit Rules, 2001. The appellant claimed eligibility for CENVAT Credit on inputs used in cement manufacturing for international competitive biddings, citing provisions of CENVAT Credit Rules, 2004.

The opposing Senior Departmental Representative (SDR) argued that Notification No.67/95-CE did not align with the provisions of CENVAT Credit Rules, 2004, thus denying the benefit to clinkers used in manufacturing cement for international competitive biddings. After considering both sides' submissions and reviewing the records, it was acknowledged that the appellant supplied cement in international competitive biddings. The Tribunal noted that Rule 6 excluded such supplies due to the lack of separate records, making input credit available to the appellant. The judgment highlighted that if directed to pay duty on captively consumed clinkers, the appellant could utilize CENVAT Credit for manufacturing dutiable cement, except for exemptions related to supplies for international competitive biddings.

Consequently, the Tribunal found that the appellant established a prima facie case for the waiver of pre-deposit of the amounts in question. Therefore, the application for waiver was granted, and recovery was stayed pending the appeal's disposal. The decision was dictated and pronounced in court by the presiding judges.

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