Pre-deposit and stay of recovery granted conditionally in an excise appeal involving Cenvat credit and DEEC imports.

An application for waiver of pre-deposit and stay of recovery in an appeal against duty and equal penalty under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act was considered on the basis of competing claims regarding wheel sets imported under the DEEC scheme and alleged non-requirement of CVD reversal on clearance to the appellant's own unit. Taking the record and the appellant's offer of a limited deposit into account, the Tribunal directed pre-deposit of Rs. 10 lakhs within four weeks. On compliance, the balance dues were waived and recovery was stayed during pendency of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in the appeal against duty and penalty, and what amount should be directed to be deposited at the interim stage.

Analysis: The application concerned duty and equal penalty imposed under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. The applicant claimed that the wheel sets were imported under the DEEC scheme and that reversal of CVD on the goods cleared to its own unit was not required. The Tribunal noted the competing stands, considered the record, and took into account the applicant's offer to make a limited deposit of Rs. 10 lakhs.

Conclusion: The Tribunal directed the applicant to pre-deposit Rs. 10 lakhs within four weeks. On such deposit, the balance of the adjudged dues was waived and recovery was stayed during the pendency of the appeal.

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