CENVAT credit and pre-deposit relief in plant construction dispute: balance deposit waived and recovery stayed pending appeal.

A prima facie case for CENVAT credit was found where the record indicated fabricated items and the use of plates and similar materials in constructing a sulphuric acid plant. The dispute on admissibility and limitation also had arguable support in existing decisions, and the amount already deposited was treated as sufficient at the appeal stage. On that basis, the balance pre-deposit was waived and recovery of the disputed amount was stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of the balance pre-deposit and stay of recovery during the pendency of the appeal.

Analysis: The available record showed fabricated items and use of plates and similar materials in the erection of the sulphuric acid plant, indicating a prima facie case on eligibility to CENVAT credit. The Tribunal also noted that the dispute on admissibility and limitation had arguable support in the existing decisions, and that the amount already deposited was sufficient at the stage of hearing of the appeal.

Conclusion: The balance pre-deposit was waived and recovery of the disputed amount was stayed during the pendency of the appeal.

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