2012 (11) TMI 688 - AT - Central Excise

CENVAT credit on capital goods denied - delay in filing appeal by 25 days - Held that - The reasons for delay as explained by assessee that the person dealing with the excise matter was transferred and new person took charge of excise matters therefore, the appeal was filed beyond the normal period of limitation. As assessee had sufficiently explained the delay in filing the appeal before the Commissioner (Appeals) the matter is remanded to the Commissioner (Appeals) to decide on merits, on showing the deposit of the above mentioned amount of Rs. 5 lakhs - in favour of assessee by way of remand.

Summary

Issues:
1. Waiver of pre-deposit of duty, interest, and penalty.
2. Appeal dismissal as time-barred.

Analysis:
1. Waiver of Pre-deposit:
The applicant sought waiver of pre-deposit of duty, interest, and penalty amounting to Rs.29,81,282. The demand was confirmed due to denial of credit on duty paid for capital goods stored at unregistered premises. The applicant cited a favorable decision by the Commissioner (Appeals) on a similar issue. During the hearing, the applicant offered to deposit Rs.5,00,000 for the appeal. The Tribunal found this amount sufficient for hearing the appeal and directed the applicant to deposit it within eight weeks. Upon this deposit, the pre-deposit of the remaining dues was waived, and recovery stayed during the appeal's pendency.

2. Appeal Dismissal as Time-barred:
The appeal was filed against an order by the Commissioner (Appeals) who dismissed it as time-barred due to a delay of 25 days. The reason for the delay provided by the applicant was the transfer of the individual handling excise matters, resulting in the appeal being filed beyond the normal limitation period. The Tribunal accepted this explanation, setting aside the impugned order. The matter was remanded to the Commissioner (Appeals) for a decision on merits, subject to the deposit of Rs.5 lakhs and providing an opportunity for the appellant to be heard. The appeal was disposed of through remand, allowing for a fresh consideration on the merits.