2006 (3) TMI 588 - AT - Central Excise

Summary

Issues:
Prayer for dispensing with pre-deposit of duty amount and personal penalty.

Analysis:
The appellant, engaged in the manufacture of processed textiles, was granted Modvat credit from 1-4-2003 by Notification No. 25/03-CE (NT). The appellant filed stock declarations on 1-4-2003 and 25-5-2003. A letter dated 7-7-2003 sought clarification on the formula for valuing goods for deemed Cenvat credit. The Revenue authorities contended that the letter was barred as the declaration deadline was 15-6-2003. However, the Tribunal found that the letter referenced the earlier stock declarations and sought clarification, not a fresh declaration. As there was no dispute about the stock position in the earlier declarations, the Tribunal held that the Modvat credit could not be denied. Consequently, the Tribunal dispensed with the pre-deposit condition of duty and penalty, staying their recovery pending the appeal's regular hearing.