Prima facie case for waiver of pre-deposit found where credit-availing capital goods were exported under bond.

Export of capital goods under bond without payment of duty, where CENVAT credit had been taken, was treated as supported by Board circulars of 1996 and 2000 and by prior Tribunal authority. On that basis, the appellant was held to have established a strong prima facie case for interim protection against recovery of the demanded credit. Unconditional waiver of pre-deposit was granted and recovery of the adjudged dues was stayed during pendency of the appeal.

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Issues: Whether the appellant had made out a prima facie case for unconditional waiver of pre-deposit and stay of recovery in respect of CENVAT credit demanded on capital goods exported under bond.

Analysis: The capital goods imported by the appellant had been exported. The Board's circulars of 1996 and 2000 stated that a manufacturer who has taken credit may clear inputs or capital goods for export under bond without payment of duty. The Tribunal's earlier view in the cited decision also supported that position. In the circumstances, the appellant established a strong prima facie case for interim relief.

Conclusion: Unconditional waiver from pre-deposit was granted and recovery of the adjudged dues was stayed during the pendency of the appeal.

Final Conclusion: Interim protection was granted to the appellant, and the appeal was directed to be listed for final hearing.

Ratio Decidendi: Where Board circulars and prior tribunal authority support export of credit-availing capital goods under bond without payment of duty, a strong prima facie case exists for waiver of pre-deposit and stay of recovery.

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