Accumulated Cenvat credit refund claim supported prima facie case for unconditional waiver of pre-deposit and stay of recovery.

An assessee claimed refund of accumulated Cenvat credit under Rule 5 after exporting goods, repaying the rebate with interest, and taking equivalent credit in its account. The jurisdictional Assistant Commissioner sanctioned the refund on the basis that the credit remained unutilised during the relevant quarter. On that factual and statutory basis, the Tribunal found no infirmity in the original order and held that a prima facie case was made out against the appellate order, resulting in unconditional waiver of pre-deposit and stay of recovery during the pendency of the appeals.

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Issues: Whether unconditional waiver of pre-deposit and stay of recovery should be granted in view of the claim for refund of accumulated Cenvat credit under Rule 5 of the Cenvat Credit Rules, 2004.

Analysis: The appellant had exported goods, later repaid the rebate received along with interest, and thereafter availed equivalent Cenvat credit in its account. The jurisdictional Assistant Commissioner had sanctioned refund of the accumulated credit after finding that the credit remained unutilised during the relevant quarter. On this basis, the Tribunal found no infirmity in the original order and held that the appellant had made out a prima facie case against the impugned appellate order.

Conclusion: Unconditional waiver of pre-deposit was granted and recovery was stayed during pendency of the appeals.

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