2011 (2) TMI 907 - AT - Central Excise

Modification application - Deposit of 20% of duty - availment of modvat credit on the basis of fake and fictitious invoices issued by non existent weavers is involved in the present case - As such by taking into account the Tribunal s decision in the case of M/s. Bhagwati Silk Mills 2011 -TMI - 203593 - CESTAT AHMEDABAD the matter stands remanded - In view of the law declared in the case of M/s. Bhagwati Silk Mills the impugned order is set aside and matter remanded to the original adjudicating authority for denovo adjudication in the light of the observations made in the case of M/s. Bhagwati Silk Mills referred supra - Accordingly modification application appeals get disposed off.

Summary

Issues:
- Direction to deposit 20% of confirmed duty for appeal hearing
- Consideration of Tribunal's decision on pre-deposit requirement
- Availment of modvat credit based on fake invoices
- Modification application and appeal disposal

Direction to Deposit 20% of Confirmed Duty:
The appellants were directed to deposit 20% of the confirmed duty of Rs.1,63,88,462/- for their appeal hearing. They deposited Rs.9 lakhs and filed a modification application citing a Tribunal decision in a similar case where pre-deposits were not required once matters were remanded to the original adjudicating authority. The Tribunal considered this argument and modified the direction to pre-deposit 25% of the duty, taking into account the previous deposit as sufficient. Consequently, the appeal was decided without the need for further pre-deposits.

Consideration of Tribunal's Decision on Pre-Deposit Requirement:
The Tribunal referenced its decision in another case involving the same issue of allowing stay petitions without pre-deposits once matters were remanded. By relying on the precedent set in the case of M/s. Bhagwati Silk Mills, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority for fresh adjudication based on the observations made in the aforementioned case. This decision was crucial in determining the necessity of pre-deposits in the present case and led to the modification of the original direction.

Availment of Modvat Credit Based on Fake Invoices:
The Tribunal noted that the present case involved the identical issue of availment of modvat credit based on fake and fictitious invoices issued by non-existent weavers. By considering the Tribunal's past decisions and the legal principles established in cases like M/s. Bhagwati Silk Mills, the Tribunal deemed the deposit of Rs.9 lakhs as sufficient and proceeded to decide the appeal without further pre-deposits. This aspect of the judgment highlighted the importance of legal precedents and their application in similar cases.

Modification Application and Appeal Disposal:
The modification application and appeals were disposed of in the manner outlined above, with the Tribunal setting aside the impugned order and remanding the matter for fresh adjudication. The decision was based on the Tribunal's interpretation of past judgments and the legal principles governing pre-deposit requirements in cases involving similar issues. The disposal of the modification application and appeals marked the conclusion of the legal proceedings in this matter, guided by the Tribunal's analysis of relevant legal precedents and considerations.