2014 (4) TMI 136 - AT - Central Excise

Waiver of pre deposit - Clearance of goods on which cenvat credit was availed without reversing the entire amount of the cenvat credit that has been availed by assessee when he purchased the capital goods - Held that - appellant has made out a prima facie case for the waiver of the pre-deposit of the amounts involved. Accordingly, application for the waiver of pre-deposit of the amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Following decision of the case of Raghav Alloys (P) Ltd. 2010 (4) TMI 294 - PUNJAB & HARYANA HIGH COURT - Stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of amount, interest, and penalty due to availing cenvat credit on capital goods.

Analysis:
- The stay petition was filed seeking the waiver of pre-deposit of an amount, interest, and penalty totaling Rs.88,890/-, confirmed against the appellant for clearing capital goods without reversing the entire cenvat credit availed on their purchase.
- The appellant, though absent, submitted written arguments which were considered by the Tribunal.
- The Departmental Representative (D.R.) argued that the appellant cleared the capital goods at a value lower than the invoiced amount, contending that the reversal should be of the credit availed on such goods as per Rule 3(5).
- The D.R. acknowledged a similar issue decided by the Hon'ble Punjab & Haryana High Court in the case of Raghav Alloys (P) Ltd. The Tribunal, after reviewing the cited case law, found it binding and held that a prima facie case for waiver of pre-deposit was established based on the High Court's judgment.
- Consequently, the Tribunal allowed the application for the waiver of pre-deposit and stayed the recovery of the amounts in question until the appeal's final disposal. The decision was made in accordance with the precedent set by the Punjab & Haryana High Court, which was deemed binding on the Tribunal judge, leading to the favorable outcome for the appellant in this case.