2013 (11) TMI 1114 - AT - Central Excise

Availment of CENVAT Credit on Machineries supplied by AESPL - Payment made through A/c Payee cheque Waiver of Pre-deposit the machineries were received by the Applicant and installed in their factory and the entire sale proceeds were paid by the Applicant to AESPL through A/C Pay Cheques Following Sapphire Paper Mills (P) Ltd. vs. CCE & ST, Siliguri 2013 (10) TMI 1278 - CESTAT KOLKATA assessee availed cenvat credit on the basis of invoices issued by the manufacturer having Central Excise Registration - They have paid the amount by Account Payee Cheques and the machines are in existence in the factory of the applicant - Applicant could able to make out a prima facie case for total waiver of pre-deposit of dues stay granted.

Summary

Issues:
1. Waiver of predeposit of CENVAT Credit and penalty in two appeal cases.

Analysis:
In the present case, the Applicant sought waiver of predeposit of CENVAT Credit and penalty in two separate appeal cases. The Applicant had purchased machineries from a supplier and availed CENVAT Credit based on invoices issued by the supplier. An inquiry was initiated against the supplier for alleged non-manufacture and non-supply of goods. The Applicant contended that the goods were received, installed in their factory, and payments were made through 'A/C Payee' Cheques. The Tribunal noted a similar case where unconditional stay was granted, and since the facts were analogous, the Applicant made a prima facie case for total waiver of predeposit of all dues adjudged.

The central issue in the case revolved around the availment of CENVAT Credit by the Applicant on the machineries supplied by the supplier. It was undisputed that the machineries were received and installed in the Applicant's factory, with payment made through 'A/C Pay Cheques'. The Tribunal considered the precedent of a similar case where stay was granted and found that the Applicant had established a prima facie case for total waiver of predeposit of all dues adjudged. Consequently, the Tribunal allowed the stay petitions, waived all dues adjudged, and stayed the recovery during the pendency of the Appeals.

In conclusion, the Tribunal granted the Applicant's request for waiver of predeposit of CENVAT Credit and penalty in the two appeal cases based on the similarity of facts with a previous case where stay was allowed. The Tribunal found that the Applicant had made out a prima facie case for total waiver of predeposit of all dues adjudged and, therefore, granted the stay petitions, waiving all dues adjudged, and staying the recovery during the pendency of the Appeals.