2013 (10) TMI 1143 - AT - Central Excise

Interpretation of eligibility of CENVAT Credit Waiver of Pre-deposit cenvat credit on items like, H.R. Plates, Joists, Beams, Channels etc. - Held that - Following Vandana Global Ltd. vs. CCEX, Raipur 2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) - This Tribunal has been taking a consistent view by allowing stay petition of the assessee where extended period of limitation is involved but directed predeposit, wherever demand is for normal period of limitation - the Applicant are directed to make amount as pre-deposit upon such submission the balance dues would stand waived and its recovery stayed during pendency of the Appeal - Partial Stay granted.

Summary

Issues:
Waiver of predeposit of cenvat credit and penalty under Rule 15 of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944.

Analysis:
The appellant sought waiver of predeposit of cenvat credit amounting to Rs.6.05 Crores and an equal penalty imposed under relevant provisions. The advocate for the appellant argued that the cenvat credit was availed on various items used in manufacturing processes. The Commissioner had adjudicated three show-cause notices involving a total amount of Rs.7.36 Crores. While two notices were within the normal limitation period, one notice for the period from September, 2006 to March 2008 was partly barred by limitation. The appellant had already deposited a sum of Rs.61,77,637/- during the adjudication process, which was acknowledged by the adjudicating authority.

The Department did not dispute the payment made by the appellant. The Tribunal examined the issue concerning the eligibility of cenvat credit on specific items and the applicability of a previous decision. It was noted that the Tribunal had consistently allowed stay petitions of the assessee in cases involving an extended period of limitation but directed predeposit for demands within the normal limitation period. Considering the facts of the case, the Tribunal found that the appellant had already deposited a substantial amount. The total demand for cenvat credit was Rs.6.05 Crores, out of which Rs.1.5 Crores was for the normal period, and the appellant had already deposited Rs.61,77,637/-. Therefore, the Tribunal waived the predeposit of the remaining dues and stayed the recovery during the appeal process. The stay petition was allowed, and the decision was pronounced in open court.