2014 (1) TMI 321 - AT - Central Excise

Denial of Cenvat credit - Channels, beams, joists, round, angles, plates used in supporting structural Waiver of Pre-deposit - Held that - Following Vandana Global Ltd. vs. CCE, Raipur 2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) - the issue is disputable issue of factual position - the applicant directed to deposit 50% of the duty as pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues:
1. Recalling of final order due to non-prosecution.
2. Dismissal of appeal and stay petition.
3. Denial of Cenvat credit for steel items.
4. Disputable issue of factual position regarding the use of steel items.
5. Direction for depositing 50% of duties involved.

Analysis:

1. The judgment addresses the application for recalling the final order due to non-prosecution. The appellant's counsel was unable to appear due to sickness, and the notice was for the disposal of stay, not the appeal itself. The Tribunal agreed that the appeal should not have been dismissed for non-prosecution and allowed the application for recalling the order.

2. The judgment discusses the dismissal of the appeal and stay petitions concerning the demand of duty amounting to Rs. 15,02,825 and Rs. 13,59,935, along with penalties. The demands were confirmed by denying Cenvat credit for steel items used in supporting structural purposes. The appellant argued that the steel items were used for fabrication of capital goods, which was not accepted by the lower authorities. The Tribunal directed the appellant to deposit 50% of the duties involved within eight weeks to waive the balance amount of duty and penalty, with recovery stayed till the appeal's pendency.

3. The issue of denial of Cenvat credit for steel items such as channels, beams, joists, etc., used for supporting structural purposes was raised. The appellant claimed the items were used for fabrication of capital goods, but the lower authorities did not extend the benefit due to lack of proper records. The Tribunal noted the disputable factual position regarding the use of steel items and directed the appellant to deposit 50% of the duties involved to proceed with the appeal.

4. The judgment highlights the disputable issue of factual position concerning the use of steel items. While the Revenue considered the items as supporting structural, the appellant argued they were used for fabrication of capital goods. The Tribunal acknowledged the differing positions and directed the appellant to deposit 50% of the duties to continue with the appeal process, emphasizing the need for compliance by a specified date.

5. Finally, the judgment provides a direction for the appellant to deposit 50% of the duties involved in both cases within a specified period. Upon compliance, the balance amount of duty and penalties would be waived, and recovery stayed during the appeal's pendency. The matter was scheduled for further review to ensure compliance with the directive.