2014 (3) TMI 1053 - AT - Central Excise

Waiver of predeposit of MODVAT along with interest - Held that - Commissioner (Appeals) on earlier occasion remanded the matter to the adjudicating authority for verification of the original copies of the invoices but the applicant failed to produce the original copies for verification. A plea was taken by the applicant before the Commissioner (Appeals) that on earlier occasion they produced the original copies of invoices before the Commissioner (Appeals) which is negated by the Commissioner (Appeals) in the impugned order with detailed finding. Prima facie, the applicant failed to produce the original invoices. The learned counsel submittion that they have placed the duplicate copies of invoices which was not considered by the lower authorities would be looked into at the time of hearing the appeals at length. In view of that the applicant is directed to make predeposit of ₹ 3,00,000/- (Rupees three lakhs only) within a period of six weeks and report compliance on 23.5.2014. Upon such deposit, predeposit of the balance dues stands waived and recovery thereof stayed during the pendency of the appeals.

Summary

Issues: Application for waiver of predeposit of MODVAT

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the applicant filed applications seeking waiver of predeposit of MODVAT amounting to Rs. 11,80,411 along with interest. The applicants are involved in the manufacturing of glazed ceramic floor tiles classified under Chapters 69 of the CETA, 1985. The issue arose when the adjudicating authority denied MODVAT credit for the period 1994-95 and 1995-96 due to the applicant's failure to produce original copies of invoices. The Commissioner (Appeals) had previously remanded the matter for verification of the original invoices, but the applicant failed to produce them. The Commissioner (Appeals) rejected the applicant's claim of having previously submitted the original invoices, indicating a failure on the applicant's part to produce the required documentation. The applicant argued that duplicate copies of invoices were submitted, which were not considered by the lower authorities. The Tribunal directed the applicant to make a predeposit of Rs. 3,00,000 within six weeks, with the balance dues waived upon compliance, and recovery stayed during the appeal process. This decision highlights the importance of producing original invoices to claim MODVAT credit and the consequences of failing to do so, as well as the process for seeking waiver of predeposit in such cases.