2013 (12) TMI 1035 - AT - Central Excise

Denial of CENVAT credit on inputs Goods used in the manufacture of final product or not Waiver of Pre-deposit Held that - The items were used in the manufacture of final product of refractory castables and high temperature bricks either directly or indirectly - the final products were cleared on payment of duty - Relying upon CCE Vs. Rane NSK Steering Systems Ltd. 2007 (2) TMI 141 - HIGH COURT, PUNJAB AND HARYANA waiver of pre-deposits allowed till the disposal Stay granted.

Summary

Issues:
1. Recall of stay order dated 10.1.2013
2. Waiver of pre-deposit of duty, interest, and penalty

Recall of Stay Order:
The Tribunal initially directed the appellant to deposit the entire amount of CENVAT credit as demanded, along with interest and penalty, through a stay order dated 10.1.2013. Subsequently, the appellant filed an application to recall this stay order and have the stay application heard on its merits. After hearing both parties, the Tribunal was satisfied with the reasons for recalling the stay order, leading to the stay order dated 10.1.2013 being recalled, and the stay application restored to its original number. The miscellaneous application was allowed, ensuring a fair reconsideration of the stay application.

Waiver of Pre-deposit of Duty, Interest, and Penalty:
The applicant sought a waiver of pre-deposit of duty amounting to Rs.16,92,995/-, along with interest and penalty. The denial of CENVAT credit on specific inputs used in manufacturing final products was the crux of the issue. The applicant argued that the items in question were integral to the production of refractory castables and high-temperature bricks, which were subsequently cleared after payment of duty. Notably, in a previous instance concerning the same matter, the Tribunal had granted unconditional stay in the applicant's favor. The Tribunal referenced a decision by the Hon'ble Punjab & Haryana High Court in a related case to support its decision. Following a thorough review of submissions from both sides, the Tribunal granted the waiver of pre-deposit of duty, interest, and penalty, staying the recovery of these amounts until the appeal's final disposal. The appeal was directed to be tagged with a specific Appeal No. E/198/2011, and the stay application was allowed, providing relief to the appellant.