2014 (1) TMI 734 - AT - Central Excise

Denial of cenvat credit Iron and steel items used as supporting structures of the boiler in the sugar manufacturing industry Waiver of Pre-deposit Held that - Relying upon Commissioner Of Central Excise Jaipur Versus M/s Rajasthan Spinning & Weaving Mills Ltd. 2010 (7) TMI 12 - SUPREME COURT OF INDIA - the appellant is seen to have an arguable case in the substantive appeal Thus the assessee 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 involved: Disallowance of cenvat credit under Central Excise Act, 1944; Eligibility of cenvat credit for duty paid on iron and steel items; Appeal against adjudicating order; Petition seeking waiver of pre-deposit amount.

In the judgment delivered by Appellate Tribunal CESTAT NEW DELHI, the Adjudicating Authority disallowed cenvat credit of Rs. 23,11,160-00 under rule 14 r/w proviso to Sec. 11A of the Central Excise Act, 1944. The Authority appropriated Rs. 5,48,458-00 already deposited by the petitioner/appellant and demanded the balance of Rs. 17,62,702-00. The Commissioner (appeals) upheld the adjudicating order and dismissed the petitioner's appeal, leading to the present appeal and a petition seeking waiver of the pre-deposit amount.

The central dispute in the petitioner's appellate claim revolved around the eligibility of cenvat credit for duty paid on iron and steel items used as supporting structures of the boiler unit in the petitioner's sugar manufacturing industry. The petitioner relied on precedents such as the decision in Rajastan Spinning and Weaving Mills - 2010 (255) ELT 481 (SC) and Rastriya Ispat Nigam Ltd - 2011 (267) ELT. 311 (A.P) to support their claim. The Tribunal, after considering the facts, orders of the primary and appellate authorities, and the precedents cited, acknowledged that the petitioner/appellant had an arguable case in the substantive appeal.

Consequently, the Tribunal deemed it appropriate to grant waiver of the pre-deposit for preferring the appeal, with the condition that the petitioner deposits 50% of the duty as assessed in the Order in Original and as confirmed in appeal, taking into account the amount already deposited. The petitioner was instructed to deposit the specified amount within six weeks from the date of the order, failing which the stay granted would stand dissolved immediately upon default. The petitioner's compliance was required by a specified date.

In conclusion, the Tribunal ordered the application for waiver of the pre-deposit as outlined above, providing a pathway for the petitioner to proceed with the appeal while ensuring compliance with the necessary deposit requirements.