Court permits bond instead of cash deposit for Cenvat credit appeal.

The Court allowed the appeal challenging the Customs, Excise & Service Tax Appellate Tribunal's order, particularly regarding the directive to deposit 50% of Cenvat credit. The Court modified the order to permit the appellant to furnish a bond for 50% of the basic Cenvat credit instead of a cash deposit, considering the prima facie case in favor of the appellant and the lack of evidence from the respondent. The appeal was granted, and the questions of law were resolved accordingly.

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Issues:
1. Challenge to order of Customs, Excise & Service Tax Appellate Tribunal under Section 35G of Central Excise Act.
2. Direction to deposit 50% of Cenvat credit.
3. Denial of Cenvat credit based on Input Service Distributor (ISD) invoices.
4. Denial of Cenvat credit on service tax and freight paid by another party.

Analysis:
1. The appeal was filed challenging the Customs, Excise & Service Tax Appellate Tribunal's order. The substantial questions of law proposed included the justification of directing to deposit 50% of Cenvat credit even when a prima facie case was found in favor of the appellant. The Tribunal's directive was questioned based on inconsistency with previous cases where stay/appeal was granted on similar issues.

2. The Court admitted the appeal on the first question covering all other issues. The parties' counsels were heard, and since the matter involved a limited dispute with clear facts, the Court decided to finalize the appeal for the benefit of both sides. The appellant argued against the Tribunal's order to deposit 50% of basic Cenvat credit, while the respondent supported the Tribunal's decision.

3. Upon reviewing the Tribunal's order, it was observed that a prima facie case was found in favor of the appellant. The respondent failed to provide evidence contradicting this finding. Considering the interest of the Revenue and the Tribunal's prima facie case in favor of the appellant, the Court modified the order to allow the appellant to furnish a bond for 50% of the basic Cenvat credit instead of a cash deposit. The appeal was allowed, and the questions of law were decided accordingly.

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