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2013 (11) TMI 1177 - AT - Central ExciseCenvat credit on common goods Press mud emerged as by product Manufacture of sugar and molasses -Wavier of pre-deposit - Penalty u/s 11AC of the Central Excise Act, 1944 - Assessee contended that they had availed CENVAT Credit on capital goods and no duty is levied on sugarcane thus there is no question of availment of CENVAT Credit on common inputs Held that - The inputs which are used in the manufacture of finished excisable goods and exempted goods, i.e. Press Mud, had neither been specified in the notice nor in the Order - The Applicant could able to make out a prima facie case for total waiver of all dues during pendency of the Appeal Pre-deposit of all dues waived and its recovery stayed during pendency of the Appeal - Stay granted.
Issues: Application for waiver of pre-deposit of CENVAT Credit and penalty under Section 11AC of the Central Excise Act, 1944.
The judgment delivered by the Appellate Tribunal CESTAT Kolkata pertained to an Application seeking wavier of pre-deposit of CENVAT Credit and penalty imposed under Section 11AC of the Central Excise Act, 1944. The Applicant argued that the demand was related to the payment of 5% of the sale price of Press Mud, a by-product in the manufacture of sugar and molasses. The Applicant had availed CENVAT Credit on capital goods and sugarcane used in the production of finished goods. The Advocate contended that since no duty was levied on sugarcane, there was no question of availing CENVAT Credit on common inputs. On the other hand, the Revenue's representative failed to clarify the common inputs on which the CENVAT Credit was availed by the Applicant for manufacturing the finished excisable goods and the exempted goods, namely Press Mud. Upon hearing both parties and examining the records, the Tribunal noted that the inputs utilized in the production of finished excisable goods and exempted goods, such as Press Mud, were not specified in the notice or the Order under question. Consequently, the Applicant was able to establish a prima facie case for the complete waiver of all dues determined during the pendency of the Appeal. As a result, the Tribunal granted the waiver of pre-deposit of all dues adjudged and stayed the recovery during the Appeal process, thereby allowing the Stay Petition. The judgment was dictated and pronounced in an open court setting.
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