2014 (1) TMI 731 - AT - Central Excise

Denial of cenvat credit - Welding electrodes used in repair of machineries Waiver of Pre-deposit Held that - Both Assessee and Revenue relied upon various decisions - In view of conflicting decisions, and also in view of doubt expressed by one Bench of the Supreme Court itself, it would be proper to grant waiver of pre-deposit of dues till the disposal Stay granted.

Summary

Issues:
Waiver of pre-deposit of dues arising from confirmed excise duty by denying Cenvat credit on 'welding electrodes' used in repair of machineries.

Analysis:
The judgment concerns an application seeking waiver of pre-deposit of dues arising from an impugned order confirming excise duty by denying Cenvat credit on welding electrodes used in machinery repair. The issue is highly disputed, with the applicant citing decisions from High Courts in their favor, while the Revenue relies on different decisions. The Revenue argues that the definition of capital goods has been amended, and the claim now falls under the definition for inputs. Additionally, the Revenue highlights that the issue has been referred by the Apex Court to a Larger Bench, indicating conflicting decisions and doubts expressed by the Supreme Court.

The judge, considering the conflicting decisions and doubts expressed by the Supreme Court, grants the waiver of pre-deposit of dues arising from the impugned order for the admission of appeal. The order includes a stay of the collection of such dues during the pendency of the appeal. This decision aims to address the uncertainty and conflicting interpretations surrounding the issue at hand, ensuring fairness and due process in the adjudication process.