How to reverse CENVAT CREDIT while complying with CESTAT stay order demanding pre-deposit?

An assessee whenever a stay order demanding pre-deposit is issued, looks for easy way of making the pre-deposit without the deposit of cash amount. The most comfortable way by which pre-deposit can be made is vide reversing the CENVAT credit. This find legal footing through various judgments like Manak Moti Forging Pvt Ltd 264 ELT 100 (Tribunal-Mumbai), 254 ELT 528 (Tri-Calcutta), 243 ELT 601 (Tri-Chennai), 247 ELT 601(Tri-Chennai). However the next question that daunts the assessee is how to make the reversal. Only column that is ever found for reversal of CENVAT credit is in the tax returns. But the assessee cannot wait till the next return is to be filled.

The practical method followed through the legal tax platform is to make an entry in the CENVAT Credit register of the assessee as to reversal of credit stating that reversal is pursuant to stay order of Hon’ble CESTAT and getting that entry verified by the respective department. On receiving the acknowledgment from the department inform the CESTAT registry as to the compliance made along with the photocopy of the acknowledged CENVAT register. The matter comes to an end on the date of report compliance if the department representative accepts the reversal made by the assessee.          

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