2014 (4) TMI 572 - AT - Central Excise

Waiver of pre deposit - Availment of ineligible cenvat credit - Availment without actually receiving the goods - Held that - this case is regarding availment of ineligible cenvat credit by the appellant without actually receiving the goods, during the period February 2005 to May 2005. Show cause notice dated 25.01.2010 was issued for the recovery of such ineligible cenvat credit availed by the appellant - appellant has also deposited/ reversed the entire amount of duty liability confirmed by the lower authorities - appellant has made out a prima facie case for the waiver of pre-deposit of balance amounts involved. Accordingly, the application for the waiver of pre-deposit of waiver of balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

Issues:
- Stay petition for disposal after declining adjournment request
- Availment of ineligible cenvat credit without receiving goods
- Applicability of judgment of Hon'ble High Court of Gujarat
- Deposit/reversal of duty liability by the appellant
- Prima facie case for waiver of pre-deposit of balance amounts

Analysis:
The judgment by Mr. M.V. Ravindaran of the Appellate Tribunal CESTAT AHMEDABAD pertains to a stay petition where the Court Master produced a letter from the Consultant requesting adjournment due to illness, which was declined by the judge. The issue at hand involved the appellant's availment of ineligible cenvat credit without actually receiving the goods during a specific period. A show cause notice was issued for the recovery of such credit. The judge noted that a judgment of the Hon'ble High Court of Gujarat in a similar case held that demand for an extended period in such issues cannot be confirmed. Additionally, it was observed that the appellant had already deposited/reversed the entire duty liability confirmed by lower authorities, a fact confirmed by the departmental representative.

The judge acknowledged that the appellant had made a prima facie case for the waiver of pre-deposit of the balance amounts involved. Consequently, the application for the waiver of pre-deposit of the balance amounts was allowed, and the recovery thereof was stayed until the disposal of the appeal. The judgment was dictated and pronounced in the court, emphasizing the decision to grant the waiver and stay the recovery process.