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2015 (1) TMI 500 - CESTAT MUMBAIWaiver of pre deposit - 100% EOU - received goods free of duty but returned the rejected goods on payment of duty of excise through cenvat credit to the supplier of goods - Revenue's objection is that under Rule 3(4) of the CENVAT Credit Rules, cenvat credit can be utilized for payment of duty in the specified circumstances. - Held that:- In this case, the applicant is not the manufacturer of the goods in dispute. We also note that when the inputs were originally cleared by the supplier, no excise duty was paid and hence no cenvat credit was taken by the applicant. Prima facie, to us it appears that there was no need to pay any duty when the goods were being returned to the original supplier. By the above process, accumulated cenvat credit got shifted from the applicant to the supplier's unit. We have also considered the Tribunal's decision mentioned by the learned counsel. Keeping in view the overall facts, we direct the applicant to deposit 7.5% of the duty demanded, in cash, within a period of eight weeks - Partial stay granted.
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