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TMI Blog2011 (6) TMI 651X X X X Extracts X X X X X X X X Extracts X X X X ..... e., readymade garments. During the course of their manufacturing activity, the appellants purchased yarn, thereafter the yarn is sent for processing into grey fabrics. The grey fabrics were further sent for processing for finished fabrics, thereafter, the appellants used to make readymade garments. In the process of their manufacturing of readymade garments, sometimes the appellants purchases yarn, some cases they purchases grey fabric and sometimes finished fabrics, and thereafter readymade garments were manufactured, which were finally exported. The appellants were also availing Cenvat credit on inputs i.e., yarns/grey fabrics/finished fabrics. The appellants were operating under the provisions of Rule 12B of the Central Excise Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant was operating under the provisions of Rule 12B of Central Excise Rules, 2002, which was admittedly omitted by Notification No.11/04-CE (NT) dated 09/07/2004 and the appellants are filing their returns regularly by availing the Cenvat credit and clearing their goods on payment of duty or under bond thereafter they have filed rebate claims, which have been sanctioned by the department. Therefore, the demands by invoking the extended periods are not sustainable. He further submitted that the appellants are having a strong case in their favour on merit also apart from limitation. 6. In view of his submission, he further submitted that as the first appellate authority have not considered their submissions while passing the stay o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are re-produced here as under:- From the judicial decisions analysed as above, the following principles would emerge which have to be kept in mind while considering the applications for stay or for dispensing with the requirement of pre-deposit under Section 35F of the Central Excise Act, or under Section 129E of the Customs Act, or other similar provisions. (1) The applications for stay should not be disposed of in a routine manner unmindful of the consequences flowing from the order requiring the assessee to deposit full or part of the demand; (2) Three aspects to be focused while dealing with the applications for dispensing of pre-deposit are : (a) prima facie case, (b) balance of convenience, and (c) irreparable loss; (3) Interim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed order is not on merits, the stay application has been dealt with without giving any findings to the submissions made by the appellants in their stay application. Therefore, we find that prima facie, the appellants are having a strong prima facie case on limitation and balance of convenience is also in favour of the appellants. We also feel that if the appellants were directed to make any pre-deposit, then the appellants shall suffer irreparable loss. Therefore, after following the guidelines laid down by the Hon'ble High Court of Andhra Pradesh in the above cited case, we find that the appellants have a strong prima facie case in their favour. Therefore, we grant unconditional waiver of pre-deposit. 11. We have also seen that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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