2014 (2) TMI 871 - AT - Central Excise

Disallowance of input credit availed - Fixed Facility Charges - Adjudicating authority concluded and in our prima-facie view erroneously, that facilitation charges are not in respect of any identifiable commodity consumed in the manufacture of the final product - Held that - This view is prima facie not sustainable. In this view of the matter, we grant waiver of pre-deposit in full and stay all further proceedings pursuant to the impugned adjudication order pending disposal of appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT KOLKATA allowed the appeal of a manufacturer of iron and steel regarding disallowance of input credit for "Fixed Facility Charges" paid to M/s. Goyal MG Gases (P) Ltd. The Tribunal found the disallowance not sustainable and granted waiver of pre-deposit, staying further proceedings pending appeal disposal.