2012 (12) TMI 709 - AT - Central Excise

Transfer of balance CENVAT credit from one PLA account to another PLA - seeking waiver of pre-deposit of dues - Held that - Balance amount in PLA could have been obtained as refund in cash and deposited in the other account - there is no time limit for taking refund of balance in PLA. If there is any violation, it is only technical in nature and hence, there is no justification for any demand and imposition of penalty - waiver of pre-deposit of dues allowed - stay of recovery thereof till disposal of the appeal.

Summary

The Appellate Tribunal CESTAT, Bangalore heard a stay petition regarding a case where a company de-bonded its 100% E.O.U. unit and transferred CENVAT credit balance to another unit's PLA account. The tribunal found no justification for the demand and penalty imposed, stating that the balance could have been refunded in cash. Pre-deposit of dues was waived, and recovery was stayed pending appeal. (2012 (12) TMI 709 - CESTAT, Bangalore)