2013 (8) TMI 29 - AT - Central Excise

Pre-deposit for demand of Interest Held that - Since there is no amount indicated in the order in original, in my view, the appellant should be directed to deposit an amount of Rs.5,000/- as pre-deposit for hearing and disposing the appeal as he has not contested the cenvat credit confirmed as ineligible by the lower authorities.

Summary

Issues:
- Availment of cenvat credit on service tax paid
- Denial of cenvat credit by the department
- Deposit of entire amount of service tax objected to
- Contention of interest and penalty by the appellant
- Direction for deposit of Rs.5,000 as pre-deposit
- Compliance and reporting before Deputy Registrar
- Stay on recovery of balance amounts pending appeal disposal

Analysis:
The judgment pertains to a case where the appellant had availed cenvat credit on service tax paid, which was subsequently denied by the department. The appellant accepted the department's view and deposited the entire amount of the service tax objected to. The appellant also contested the demand of interest and imposition of penalty. The tribunal directed the appellant to deposit an amount of Rs.5,000 as a pre-deposit for the appeal hearing, considering that the appellant did not contest the cenvat credit confirmed as ineligible by the lower authorities.

The tribunal set a deadline of eight weeks for the appellant to deposit the specified amount and report compliance before the Deputy Registrar by a certain date. Upon confirmation of compliance, the tribunal allowed the application for the waiver of the pre-deposit of the balance amounts involved and stayed the recovery of those amounts until the appeal was disposed of. The judgment highlights the procedural steps and conditions imposed on the appellant regarding the pre-deposit and compliance reporting, ensuring a structured approach to the appeal process and financial obligations.