2014 (1) TMI 217 - AT - Central Excise

Denial of Cenvat credit Goods used as structural support - Waiver of Pre-deposit Held that - The Tribunal has been consistently taking a view and allowing the stay application wherever Cenvat Credit were demanded on items like Angles, Channels, beams etc. which were being used in the manufacture of plant and machinery and also as structural support involving extended period of limitation, but directed pre-deposit for normal period of limitation - the applicant has already deposited an amount of Rs.10.00 Lakhs and they made a fair offer to deposit another Rs.10.00 Lakhs - The offer is accepted and the applicant is directed to deposit upon such submission rest of the duty to be stayed till the disposal Stay granted.

Summary

Issues:
- Waiver of pre-deposit of Cenvat Credit
- Penalty waiver

Waiver of pre-deposit of Cenvat Credit:
The appellant sought waiver of pre-deposit of Cenvat Credit amounting to Rs.1,13,36,196/- and a penalty of Rs.7.00 Lakhs. The issue revolved around the availment of Cenvat Credit on items like Angles, Channels, Beam, Flat, Joist, Plate, Coils & Sheets used in the fabrication of plant, machinery, and structurals. The appellant contended that they had already reversed the Cenvat Credit on items used for civil structures. The Tribunal noted that the appellant had deposited Rs.10.00 Lakhs and offered to deposit an additional Rs.10.00 Lakhs. Accepting this offer, the Tribunal directed the appellant to deposit the amount within eight weeks, with the balance amount of dues adjudged being waived and recovery stayed during the appeal's pendency.

Penalty Waiver:
The appellant's representative argued that the Adjudicating Authority did not consider the capital items returned to the factory while computing the demand of Cenvat Credit. The Tribunal acknowledged the appellant's fair offer to deposit Rs.10.00 Lakhs and noted their consistent view of allowing stay applications when Cenvat Credit was demanded on items used in manufacturing plant, machinery, and structural support. The Tribunal directed the appellant to deposit the agreed amount within a specified timeframe, with the balance amount of dues being waived and recovery stayed during the appeal process. The Tribunal's decision was based on the appellant's compliance with the deposit requirements and the nature of items involved in the Cenvat Credit issue.

This judgment by the Appellate Tribunal CESTAT KOLKATA, delivered by Dr. D.M. Misra, focused on the waiver of pre-deposit of Cenvat Credit and penalty in a case concerning the availment of Cenvat Credit on specific items. The Tribunal considered the appellant's submissions, previous deposits made, and fair offer for additional deposit in reaching its decision to waive the balance amount of dues and stay recovery during the appeal's pendency.