2013 (10) TMI 350 - AT - Central Excise

Admissibility of Cenvat Credit Waiver of Pre-deposit - Held that - The credit was taken on the basis of Central Excise invoices under which the motors and other parts were separately received whereas the tax invoices were referring to supply of complete pump sets - the cenvatable inputs and the documents were received in the appellants premises and the same has not been disputed - the same were installed in the factory premises and are available for verification even now also - All the parts required for assembling the pump set were received and it has not been disputed by the department that such duty paid inputs were not received in the factory premises - the appellant has made out a prima facie case for complete waiver of confirmed dues - there shall be stay on recoveries of the confirmed dues till the disposal of appeal Stay granted.

Summary

Issues involved: Admissibility of cenvat credit of Rs. 65,710 taken by the appellant for the period from October 2006 to July 2007.

Analysis:

1. Admissibility of Cenvat Credit:
The primary issue in this appeal pertained to the admissibility of the cenvat credit amounting to Rs. 65,710 claimed by the appellant for the period spanning from October 2006 to July 2007. The appellant contended that the credit was availed based on Central Excise invoices reflecting the receipt of motors and other parts separately, while the tax invoices indicated the supply of complete pump sets. The appellant's representative argued that the cenvatable inputs and related documents were duly received at the appellant's premises, installed in the factory premises, and were available for verification. On the other hand, the Revenue's representative contended that there was a lack of correlation between the Commercial invoices submitted by them and the Central Excise invoices under which the inputs were received.

2. Arguments and Observations:
During the proceedings, both parties presented their arguments before the tribunal. The appellant's representative highlighted that all necessary parts for assembling the pump set were indeed received, and it was undisputed that duty-paid inputs had reached the factory premises. Consequently, the tribunal observed that the appellant had established a prima facie case warranting a complete waiver of the confirmed dues. The tribunal carefully examined the case records and found that the appellant had met the requirements for a stay on the recovery of the confirmed dues until the appeal's final disposal.

In conclusion, the tribunal, led by Mr. H.K. Thakur, granted a stay on the recoveries of the confirmed dues pending the appeal's resolution. The judgment emphasized the importance of substantiating the receipt and utilization of duty-paid inputs in claiming cenvat credit, ultimately ruling in favor of the appellant based on the presented evidence and arguments.