Cenvat credit adjustment dispute: excess reversal could not be set off against short reversal, with stay granted conditionally.

Excess Cenvat credit reversed on clearance of inputs as such was treated as a separate refund or adjustment issue and, prima facie, could not be set off against a short reversal demand. On that footing, the Tribunal found no basis for full waiver of interest or unconditional stay, but it protected recovery of the disputed balance subject to a conditional deposit. The appellant was directed to deposit the specified amount within the time allowed, and recovery of the remaining demand was stayed pending disposal of the appeal.

---

---

Issues: Whether the excess Cenvat credit reversed on clearance of inputs as such could be adjusted against the short reversal demanded, and whether waiver of interest and recovery protection were justified.

Analysis: The appellant did not press the merits of the reversal dispute and relied on the plea that the excess credit already reversed should be adjusted against the short reversal. The Tribunal held, prima facie, that refund or adjustment of excess credit reversed on cenvatable invoices was a separate proceeding and could not be set off against the short reversal. On that basis, the appellant had not made out a case for full waiver of interest or unconditional stay, though recovery of the balance could be protected on a conditional deposit.

Conclusion: The appellant was directed to deposit Rs. 60,000 within the stipulated period, and recovery of the remaining amount was stayed until disposal of the appeal.

---