2003 (10) TMI 579 - AT - Central Excise

Summary

Issues:
Waiver of deposit of duty and penalty for wrongly taken Cenvat credit.

Analysis:
The judgment deals with an application for the waiver of deposit of duty amounting to Rs. 3,76,221 and a penalty of Rs. 50,000, found to be wrongly taken as Cenvat credit by the adjudicating officer and the appellate authority. The chief accountant representing the appellant requested an adjournment citing the unavailability of the advocate in Chennai due to illness. However, the tribunal found the reasons for adjournment unsatisfactory as the advocate's details and engagement were not provided. Consequently, the tribunal declined the adjournment and proceeded with the hearing, allowing the chief accountant to present arguments.

The core issue revolved around the appellant claiming credit for additional duty on goods imported by Caltex India Ltd. The credit was denied due to non-compliance with the requirement specified in Board circular 179/13/96-CX, which mandated a declaration on the bill of entry for transferring goods to avail credit, endorsed by the customs officer. The stay application lacked substantial grounds, merely alleging improper consideration by the Commissioner (Appeals). The tribunal noted that the Commissioner had provided detailed reasons in the order. The appellant's reliance on a public notice issued by the Commissioner of Customs was deemed irrelevant as it did not address the specific issue at hand. The circular suggested accepting unsigned and unauthenticated documents for credit, which was impractical and against standard procedures. Lack of evidence demonstrating the transfer of goods to Caltex India Ltd. further weakened the appellant's case.

In light of the circumstances, the tribunal directed the appellant to deposit Rs. 1.90 lakhs within two months and furnish evidence thereof to waive the remaining deposit and penalty, thereby staying their recovery. The compliance deadline was set for 13-11-2003. The judgment underscores the importance of adhering to prescribed procedures and providing substantiated arguments in seeking waivers or reliefs related to duty and penalties in indirect tax matters.