2011 (8) TMI 152 - AT - Central Excise

Waiver of pre-deposit --eligibility of availment of cenvat credit on the basis of fake invoices - Sine the, identical issues have been dealt by this Bench in the case of M/s. Bhagwati Silk Mills & others in 117 matters (2011 -TMI - 203593 - CESTAT, AHMEDABAD), the issue was decided by way of remand to original adjudicating authority with directions to reconsider the issue afresh. - Thus, the appeal is allowed by way of remand.

Summary

Issues: Eligibility of cenvat credit based on allegedly fake invoices.

The judgment pertains to a stay petition seeking a waiver of a substantial amount confirmed as ineligible cenvat credit, along with interest and penalties. The primary issue revolves around the eligibility of the appellant for cenvat credit based on invoices deemed fake and ineligible. The appellant's counsel referenced a previous case involving similar issues, where the matter was remanded to the original adjudicating authority for reconsideration based on specific directions from the Tribunal. The Tribunal, after considering submissions from both parties, concluded that the issue at hand aligns with the previous order and allowed the stay petition for the waiver of pre-deposit amounts. Consequently, the appeal was taken up for disposal.

Given the nature of the issue concerning the eligibility of cenvat credit based on questionable invoices, the Tribunal decided to follow the precedent set by a previous case involving similar circumstances. The Tribunal noted that all appeals from identically situated assessees had been remanded to the original adjudicating authority with specific directions for reconsideration in light of the previous order. Therefore, the Tribunal allowed the current appeal by remanding it to the original adjudicating authority for a fresh decision in accordance with the directions provided in the prior case. It was emphasized that the adjudicating authority must adhere to the principles of natural justice during the reconsideration process. The stay petition and appeal were disposed of accordingly.

In summary, the judgment addresses the issue of cenvat credit eligibility based on invoices identified as fake. The Tribunal relied on a previous order involving similar matters to guide its decision in allowing the stay petition and remanding the appeal to the original adjudicating authority for reconsideration. The importance of following natural justice principles in reaching a conclusion was underscored, ensuring a fair and thorough review of the eligibility issue in light of the Tribunal's directions from the prior case.