2014 (1) TMI 320 - AT - Central Excise

Ineligible cenvat credit - Only the basis of paper transaction - Inputs did not move from Delhi to Ahmedabad - Waiver of Pre-deposit Held that - In various other assessees who were also covered under the same investigation, the Bench has granted an unconditional stay and produces copy of the orders there was no reason to deviate from order the applicants waived the pre-deposits till the disposal Stay granted.

Summary

Issues:
1. Stay petitions for waiver of pre-deposit of duty amounts, interest, and penalties.
2. Confirmation of demand of ineligible cenvat credit based on paper transaction.

Analysis:
1. The Tribunal considered stay petitions filed by two companies and two individuals seeking waiver of pre-deposit of duty amounts, interest, and penalties imposed on them. The issue revolved around the confirmation of demand of ineligible cenvat credit availed by the appellants solely on the basis of paper transactions, alleging that inputs did not physically move from Delhi to Ahmedabad. The appellants argued that similar cases under the same investigation were granted unconditional stay by the Tribunal, presenting relevant orders to support their claim.

2. After hearing both sides and examining the records, the Tribunal noted that in previous cases involving the same investigation, unconditional stays were granted by the Bench. Specifically referencing a recent decision where unconditional stay was granted, the Tribunal found no reason to deviate from the precedent set by earlier orders. Citing the Tribunal's decision in the case of Baroda Extrusion Limited, the Tribunal allowed the applications for waiver of pre-deposit of the amounts involved and stayed the recovery until the disposal of the appeals. The Tribunal emphasized consistency in its approach and relied on past decisions to grant relief to the appellants in this case.

This comprehensive analysis of the judgment highlights the issues raised in the stay petitions and the Tribunal's reasoning behind granting the waiver of pre-deposit based on past decisions and the specific circumstances of the case.