2013 (11) TMI 1092 - AT - Central Excise

Ineligible cenvat credit availed on various inputs Single Appeal to be file for separate appeals or not - Waiver of Pre-deposit Held that - The original authority had dispatched only one order in original and not the four orders in original to the appellants one appeal filed by the appellant before Commissioner (Appeals) is maintainable and there was no need for the appellant to file four separate appeals against one order in original - the appellant s appeal before the first appellate authority was in respect of the issues arising out of the order in original - The appellant has deposited the entire amount of the ineligible cenvat credit and the penalty confirmed by the lower authorities - the amounts deposited by the appellant as enough deposit to hear and dispose the appeal - stay granted.

Summary

Issues:
1. Appeal for waiver of pre-deposit of duty amount, interest, and penalty.
2. Consideration of multiple show cause notices in one order.
3. Applicability of appeal filed against one show cause notice to entire order.
4. Adequacy of deposit for hearing and disposal of appeal.

Analysis:
1. The appellant filed a stay petition seeking the waiver of pre-deposit of duty amount, interest, and penalty. The amounts were confirmed as ineligible cenvat credit availed on various inputs. The adjudicating authority had confirmed the demands based on four show cause notices in one order. The first appellate authority considered only one show cause notice in the appeal, stating that the appellant had not filed appeals against the other three notices.

2. The appellant argued that since all show cause notices were adjudicated in one order, only one appeal needed to be filed, citing a precedent. The Tribunal acknowledged this argument and held that the appeal filed by the appellant should be considered against the entire order in original, not just one show cause notice. This decision was based on a previous ruling regarding the dispatch of one order in original instead of multiple orders.

3. After considering both parties' submissions, the Tribunal found that the first appellate authority erred in not treating the appeal as an entire appeal against the order in original. The Tribunal noted that the appellant had already deposited the entire amount of ineligible cenvat credit and the penalty while contesting the issue on its merits. Therefore, the deposited amounts were deemed sufficient for hearing and disposing of the appeal.

4. Consequently, the Tribunal allowed the application for the waiver of pre-deposit of the remaining amounts involved and stayed the recovery until the appeal's disposal. The decision was dictated and pronounced in court, emphasizing the adequacy of the appellant's deposit for the appeal process.