2011 (1) TMI 638 - AT - Central Excise

Modvat credit - Availed credit on the basis of fake and fictitious invoices - The condition of pre-deposit of balance amount of duty and entire amount of penalty and proceed to decide the appeal itself, inasmuch as the issue stands covered by the precedent decision of the Tribunal in the case of M/s. Bhagwati Silk Mills and other appellants, (2011 -TMI - 203593 - CESTAT, AHMEDABAD) - Tribunal in the above referred decision has taken into consideration all the pleas raised by the appellants therein and have expressed opinion and has remanded the matter to the original adjudicating authority to decide the matters afresh, after taking into consideration the instructions issued by the CBE&C and in the light of the observations made in the said order - Stay petition as also appeal get disposed off.

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the appeal, dispensing with the need for pre-deposit of balance duty and penalty amount. The Tribunal remanded the matter to the original adjudicating authority based on a precedent decision regarding denial of modvat credit due to fake invoices. The impugned order was set aside and the matter was remanded for a fresh decision.