2014 (11) TMI 198 - AT - Central Excise

Wavier of pre-deposit - Denial of CENVAT Credit on Computers - Nexus with manufacturing activity - Held that - computers have been used by the applicant for maintaining stocks in the factory. In these circumstances, prima facie, I am of the view that these computers are having nexus to the manufacturing activity of the applicant therefore, they are entitled to take input credit. Accordingly, I waive the requirement of pre-deposit of the entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal - Stay granted.

Summary

The appellate tribunal waived the pre-deposit of impugned demands for the applicant as the computers used in the factory were found to have nexus with manufacturing activity, allowing them to take input credit. Recovery of duty, interest, and penalty was stayed during the appeal.