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2012 (1) TMI 116 - AT - Central ExciseWaiver of pre-deposit of duty - Denial of CENVAT Credit - Board s Circular No. 345/2/2000-TRU, dated 29-8-2000 - Held that - Board has clarified vide Circular dated 29-8-2000 that there is no bar for a manufacturer to remove the inputs and capital goods for export under bond. In view of the above Circular, we find that the applicant has a strong prima facie case in their favour, therefore the pre-deposit of duty and interest is waived and recovery of the same is stayed during the pendency of the appeal - Stay granted.
Issues: Application for waiver of pre-deposit of duty and interest on exported capital goods, interpretation of Board's Circular regarding credit availed on goods exported under bond.
Analysis: The case involved an application for waiver of pre-deposit of duty amounting to Rs. 47,98,184/- and interest on capital goods exported under bond without reversing the credit availed on them. The applicant cited Board's Circular No. 345/2/2000-TRU, dated 29-8-2000, which allowed the export of inputs and capital goods on which credit had been availed under bond. The Revenue, however, argued that the credit should have been reversed when the capital goods were removed. The Commissioner (Appeals) upheld the demand, prompting the applicant to seek relief based on the Circular's interpretation. The Tribunal examined the Circular and noted that it permitted the removal of inputs and capital goods for export under bond without any restriction. In light of this clarification, the Tribunal found that the applicant had a strong prima facie case in their favor. Consequently, the Tribunal waived the pre-deposit of duty and interest, and ordered a stay on the recovery during the appeal's pendency. The Tribunal allowed the stay petition, emphasizing the applicant's compliance with the Circular's provisions and the absence of any prohibition on exporting goods under bond after availing credit. In conclusion, the judgment favored the applicant by granting the waiver of pre-deposit and staying the recovery of duty and interest. The decision hinged on the interpretation of the Board's Circular, which allowed the export of capital goods without reversing the credit availed, thereby supporting the applicant's position and providing relief from the demand raised by the Revenue.
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