2013 (11) TMI 538 - AT - Central Excise

Benefit of Cenvat credit H.R. Coil, C.R. Coils, Bars, Wires etc - Waiver of Pre-deposit Revenue was of the view that the items cannot be used as input in the manufacture of ingot - Held that - lot of evidence is required to be gone through, and a final view can only be arrived at the time of disposal of the appeal - at this point appellant has not been able to make out the case in its favour so as to dispense with the condition of pre-deposit of the entire duty amount - Appellant directed to deposit Rs. 20 lakh as pre-deposit of Penalty and Interest upon such submission rest of the duty to be waived till the disposal Partial stay granted.

Summary

Issues:
1. Denial of cenvat credit on specific items used in manufacturing.
2. Requirement of pre-deposit of duty amount pending appeal.

Analysis:
1. The judgment revolves around the denial of cenvat credit to the appellant on items like H.R. Coil, C.R. Coils, Bars, and Wires, which were considered ineligible for use as inputs in the manufacturing of ingots. The revenue confirmed an amount of approximately Rs. 89 lakhs against the appellant, along with an equivalent penalty, citing the illegality of the credit availed by the assessee. The tribunal acknowledged the need for further evidence examination before a final decision could be made but directed the appellant to deposit Rs. 20 lakhs within eight weeks. This deposit would allow the appellant to dispense with the pre-deposit condition for the remaining duty amount and penalties during the appeal process.

2. The tribunal, after considering the submissions and financial aspects of the case, ordered the appellant to make a partial deposit to proceed with the appeal. The judgment specified that compliance regarding the deposit would be reviewed on a set date. This decision aimed to balance the interests of both parties while ensuring the proper progression of the legal proceedings. The judgment provided a structured approach to address the issues raised, emphasizing the importance of evidence examination and financial considerations in reaching a fair outcome.