2012 (12) TMI 932 - AT - Central Excise

Denial of CENVAT Credit - Credit on MS Angles, channels etc. - Held that - Assessee is not entitled for input credit on the above items as the same are not a part of capital goods - appellant has not made out a case for 100% waiver of pre-deposit - Following Vandana Global Ltd. vs CCE, Raipur 2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) - decision of Decided conditionally in favour of assessee.

Summary

Issues:
Appeal dismissal for non-compliance with Section 35F of Central Excise Act, 1944 regarding denial of CENVAT credit on certain items not considered as capital goods.

Analysis:
The appellant appealed against an order dismissing their appeal due to non-compliance with Section 35F of the Central Excise Act, 1944. The issue revolved around the denial of CENVAT credit on items like MS Angles and channels, categorized as not being "capital goods," thus ineligible for input credit. The appellant failed to pre-deposit the duty amount as directed by the Commissioner (Appeals), resulting in the dismissal of the appeal. The Tribunal referred to the decision of a Larger Bench in Vandana Global Ltd. vs CCE, Raipur, which stated that such items do not qualify for input credit. Although the decision was challenged in the High Court of Chattisgarh, pending a verdict, the Tribunal ruled for a 50% waiver of the duty amount, directing the appellant to pre-deposit a specific sum within a stipulated time frame. Upon compliance, the first appellate authority was instructed to reconsider the case on its merits and within the legal framework.

The Tribunal remanded the matter back to the first appellate authority for a fresh review and appropriate order in line with the law. The appeal and stay application were concluded with the specified pre-deposit condition. A compliance report was mandated to be submitted to the first appellate authority by a specified date for further proceedings.