2009 (6) TMI 793 - AT - Central Excise

Summary

The judgement by the Appellate Tribunal CESTAT, CHENNAI, from 2009 (6) TMI 793, involved a case where the appellants operated under the Cenvat credit scheme and exported inputs under bond. The lower authorities demanded an amount of Rs. 28,196 under Rule 14 of the Cenvat Credit Rules, 2004, along with interest and penalty. The appellants argued that there was no bar for a manufacturer to remove inputs for export under bond, citing a Board's letter. They also referenced a Tribunal decision that vacated a similar demand for duty on exported inputs. After reviewing the case records and submissions, the judge found that the appellants had a prima facie case against the demand and penalty. Consequently, the judge ordered a waiver of pre-deposit and a stay of recovery of the demand and penalty pending the appeal decision. The order was dictated and pronounced in open court.