CENVAT credit on molasses and interim relief: unconditional waiver of pre-deposit granted, with recovery stayed pending appeal.

A waiver of pre-deposit and stay of recovery was granted where the dispute involved alleged ineligible CENVAT credit on molasses used to manufacture rectified spirit and denatured spirit. The Tribunal found, prima facie, that the Revenue's objection to credit on molasses consumed in the manufacture of denatured spirit was not convincing, and noted that the appellant had already discharged 6% of the value on rectified spirit cleared as such. On those facts and the cited decisions, the appellant was held to have made out a strong case for interim relief, and recovery remained stayed during the pendency of the appeal.

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Issues: Whether the appellant was entitled to unconditional waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The demand arose from alleged ineligible CENVAT credit on molasses used in the manufacture of rectified spirit and denatured spirit. The Tribunal noted that, prima facie, the Revenue's objection to credit on molasses consumed for manufacture of denatured spirit did not appear meritorious. It also noted that, for rectified spirit cleared as such, the appellant had already discharged 6% of the value of the goods. In view of these facts and the cited decisions relied upon, the appellant was found to have established a strong case for interim relief.

Conclusion: The appellant was granted unconditional waiver from pre-deposit of the adjudged dues and recovery was stayed during the pendency of the appeal.

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