Concessional duty and Cenvat credit dispute supports prima facie case for waiver of pre-deposit and stay of recovery.

A prima facie case for waiver of pre-deposit arose where the assessee cleared final products at a concessional rate under Notification No. 59/2008-C.E. after forgoing the exemption otherwise available under Notification No. 29/2004-C.E., and the dispute concerned only reversal of Cenvat credit on inputs used for those clearances. On that record, CESTAT Ahmedabad granted interim relief by waiving pre-deposit and staying recovery of the demanded amounts pending disposal of the appeals.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery in relation to the demand confirmed for alleged wrong availment of concessional duty notification and corresponding Cenvat credit.

Analysis: The appellants cleared final products by availing the concessional rate under Notification No. 59/2008-C.E. after foregoing the exemption otherwise available under Notification No. 29/2004-C.E. The dispute raised by the Revenue was essentially directed to reversal of Cenvat credit taken on inputs used for such clearances. In these circumstances, and in view of the supporting precedent noticed by the Tribunal, the record disclosed a sufficient prima facie case in favour of the appellants for interim relief.

Conclusion: The appellants were entitled to waiver of pre-deposit and recovery of the demanded amounts was stayed till disposal of the appeals.

Ratio Decidendi: Where the assessee clears goods on payment of concessional duty under the applicable notification and the dispute is only about reversal of input credit used for such clearances, a prima facie case may exist for waiver of pre-deposit and stay of recovery.

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