Tribunal grants stay petition, waives pre-deposit of Rs.88,890 based on appellant's argument and High Court precedent.

The Tribunal granted the stay petition for the waiver of pre-deposit of amount, interest, and penalty totaling Rs.88,890/-, based on the appellant's argument and the precedent set by the Punjab & Haryana High Court in a similar case. The Tribunal found a prima facie case for waiver of pre-deposit, following the High Court's judgment, and stayed the recovery of the amounts until the final disposal of the appeal, resulting in a favorable outcome for the appellant.

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Issues: Stay petition for waiver of pre-deposit of amount, interest, and penalty due to availing cenvat credit on capital goods.

Analysis:
- The stay petition was filed seeking the waiver of pre-deposit of an amount, interest, and penalty totaling Rs.88,890/-, confirmed against the appellant for clearing capital goods without reversing the entire cenvat credit availed on their purchase.
- The appellant, though absent, submitted written arguments which were considered by the Tribunal.
- The Departmental Representative (D.R.) argued that the appellant cleared the capital goods at a value lower than the invoiced amount, contending that the reversal should be of the credit availed on such goods as per Rule 3(5).
- The D.R. acknowledged a similar issue decided by the Hon'ble Punjab & Haryana High Court in the case of Raghav Alloys (P) Ltd. The Tribunal, after reviewing the cited case law, found it binding and held that a prima facie case for waiver of pre-deposit was established based on the High Court's judgment.
- Consequently, the Tribunal allowed the application for the waiver of pre-deposit and stayed the recovery of the amounts in question until the appeal's final disposal. The decision was made in accordance with the precedent set by the Punjab & Haryana High Court, which was deemed binding on the Tribunal judge, leading to the favorable outcome for the appellant in this case.

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