CESTAT grants stay, waives duty pre-deposit for appeal on capital goods movement

The Appellate Tribunal CESTAT, New Delhi granted the stay petition, waiving the pre-deposit of duty for hearing the appeal. The Tribunal agreed with the applicant's argument regarding the movement of capital goods to the job worker under Rule 4(5) of Cenvat Credit Rules, noting the job workers' use of invoices on capital goods in processing.

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The Appellate Tribunal CESTAT, New Delhi allowed the stay petition and waived the pre-deposit of duty of Rs. 46,816 for hearing the appeal. The applicant's contention was that capital goods can be moved from the factory to the job worker as per Rule 4(5) of Cenvat Credit Rules. The Tribunal found that the applicant had a strong case in their favor as the job workers were using the invoice on capital goods in processing.

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