2015 (2) TMI 180 - AT - Central Excise

Waiver of pre deposit - Denial of input service credit - applicant did not have a storage capacity of the furnace oil at the particular point of time, having more stock than the storage capacity. - Held that - applicant are having necessary storage tank before audit and additional storage tank was dismantled before audit. They are also receiving the furnace oil in barrels which was kept in their factory, therefore the storage capacity cannot be based for denial of credit on the furnace oil. - applicant has made out a case for 100% waiver of pre-deposit. Accordingly, I waive the recovery of duty, interest and penalty and stay recovery thereof during the pendency of the appeal. - Stay granted.

Summary

The Appellate Tribunal CESTAT MUMBAI ruled in favor of the applicant, waiving the recovery of duty, interest, and penalty on input credit for furnace oil due to storage capacity issues. The applicant had necessary storage tanks before audit, and additional tank was dismantled before audit, receiving furnace oil in barrels kept in their factory.