Export of capital goods under bond supported waiver of pre-deposit and stay of recovery in credit reversal dispute.

Credit taken on capital goods exported under bond without reversal was held to support a strong prima facie case for interim relief. Relying on the Board's clarification that there is no bar on removal of inputs and capital goods for export under bond, CESTAT granted waiver of pre-deposit of duty and interest and stayed recovery pending the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit of duty and interest and stay of recovery in proceedings relating to reversal of credit on capital goods exported under bond.

Analysis: The appellant had availed credit on capital goods and later exported the capital goods under bond without reversing the credit. Reliance was placed on the Board's circular clarifying that there is no bar on removal of inputs and capital goods for export under bond. In view of that clarification, the Tribunal found that the appellant had a strong prima facie case for grant of interim relief.

Conclusion: Pre-deposit of duty and interest was waived and recovery was stayed during pendency of the appeal.

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