2014 (1) TMI 371 - AT - Central Excise

Eligibility for cenvat credit under Pan Masala Packing Machine Rules Waiver of Pre-deposit Held that - Following M/s SHIV SHAKTI AGRIFOOD PVT LTD Versus COMMISSIONER OF CENTRAL EXCISE, DELHI-I 2012 (9) TMI 742 - CESTAT, NEW DELHI - the deposit of the entire amount of the duty liability directed Thus, the appellant is directed to deposit entire amount of the duty liability as pre-deposit stay not granted.

Summary

Issues:
1. Adjournment request due to consultant's unavailability.
2. Confirmation of duty liability, interest, and penalties for availing ineligible cenvat credit.
3. Requirement to deposit duty liability based on a previous judgment.
4. Stay on recovery of interest and penalties pending appeal.

Issue 1:
The appellant requested adjournments citing consultant's unavailability. The bench declined the second adjournment request, emphasizing that the reason provided was not acceptable. As a result, the stay petition was taken up for disposal.

Issue 2:
The adjudicating authority confirmed duty liability, interest, and penalties on the appellant for availing ineligible cenvat credit under Pan Masala Packing Machine Rules. The Additional Commissioner submitted a previous judgment where a similar issue required the deposit of the entire duty liability. The bench, upon reviewing the case law and tribunal order, directed the appellant to deposit the full duty liability within twelve weeks and report compliance. Upon compliance verification, the waiver application for the balance amounts of interest and penalty was allowed, with recovery stayed pending appeal.

Issue 3:
Based on the similarity of the issue with a previous case, the appellant was directed to deposit the entire duty liability within twelve weeks and report compliance. The compliance report was to be submitted before the Deputy Registrar, who would then present the file before the bench for further orders. The waiver application for the remaining interest and penalty amounts was allowed, with recovery stayed until the appeal's disposal.

This judgment highlights the importance of compliance with procedural requirements, the consequences of availing ineligible credits, and the impact of previous judgments on current cases. The decision underscores the need for timely deposits and compliance reporting to secure waivers and stay on recovery pending appeal.