2013 (10) TMI 612 - AT - Central Excise

Shortages of Inputs - Availment of Ineligible Cenvat credit Waiver of Pre-deposit Held that - The issue involved in the case needs to be gone into detail as both the lower authorities have recorded the finding that there is confessional statements of the persons - they have only received the documents for availment of cenvat credit - the entire findings are incorrect as they had produced the invoices which indicate the payment of VAT and in some situations payment of GTA by the appellant was also brought to the notice which was not considered - all these issues needs to be appreciated in detail which can be done only at the time of final disposal of the appeals - appellant should be put to some condition for hearing and disposing the appeals - appellant has already deposited an amount of Rs. 2.60 Lakhs the main appellant to further deposit an amount of Rs. 1, 50, 000 upon such submission applications for the waiver of pre-deposit of balance amounts involved are allowed and recovery stayed till the disposal of appeals Partial stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of confirmed duty, interest, and penalty; Confirmed duty liability on shortages of inputs and finished goods; Ineligible cenvat credit availed; Imposition of penalties on main appellant and individuals.

The judgment pertains to a stay petition seeking the waiver of pre-deposit of confirmed duty, interest, and penalties amounting to Rs. 10,25,208. The duty liability on shortages of inputs and finished goods, as well as the ineligible cenvat credit availed by the appellant, were confirmed by the adjudicating authority and upheld by the first appellate authority. Penalties were imposed on the main appellant and individuals. The appellant had already paid Rs. 2,60,738 towards the duty liability for shortages found during an inspection. The issue of the remaining Rs. 7,40,000 held as ineligible cenvat credit required detailed examination. The lower authorities had relied on confessional statements, but the appellant disputed the findings, citing invoices showing VAT and GTA payments. The Tribunal deemed a detailed review necessary at the final disposal stage and directed the appellant to deposit an additional Rs. 1,50,000 within eight weeks. Compliance was to be reported before the Deputy Registrar for further orders. Applications for waiver of pre-deposit for the balance amounts were allowed, with recovery stayed pending appeal disposal. The matter concerning shortages of inputs and ineligible cenvat credit was directed to be placed before a Single Member Bench for adjudication.

The judgment underscores the importance of a thorough examination of the issues raised, particularly regarding the eligibility of cenvat credit and the alleged shortages. The Tribunal emphasized the need for detailed scrutiny at the final disposal stage, considering conflicting evidence and the appellant's contentions. The directive for a partial deposit by the appellant reflects a balanced approach, ensuring compliance while facilitating a fair hearing. The decision to stay recovery pending appeal disposal demonstrates the Tribunal's commitment to due process and fairness in tax matters. The referral to a Single Member Bench indicates a procedural step to streamline the adjudication process, enhancing efficiency and specialization in handling specific issues. Overall, the judgment exemplifies a nuanced approach to addressing complex tax disputes, balancing the interests of the parties involved while upholding the principles of natural justice and legal procedure.