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2013 (10) TMI 175 - AT - Central ExciseWaiver of Pre-deposit - CENVAT Credit credit on the basis of duty paid documents issued by M/s. Chennai Steels a second-stage dealer - Held that - M/s. EIFCO Machine Tools used the non-duty paid scrap and availed CENVAT credit on the basis of Central Excise invoice issued M/s. Chennai Steels describing as MS wire, coil etc. Commissioner (Appeals) proceeded on the basis of the statements of various persons following the order in Sueera Alloys Global Pvt. Ltd. 2013 (10) TMI 167 - CESTAT CHENNAI , assessee was directed to made the pre-deposit of 50% stay granted partly.
Issues involved: Denial of CENVAT credit to M/s. EIFCO Machine Tools Pvt. Ltd., imposition of penalty on M/s. Chennai Steels, applicability of Tribunal's decision in Sueera Alloys Global Pvt. Ltd. case, predeposit requirements, and stay on recovery during appeal.
Analysis: 1. Denial of CENVAT Credit to M/s. EIFCO Machine Tools Pvt. Ltd.: The company availed credit based on duty paid documents from M/s. Chennai Steels, a second-stage dealer. However, CENVAT credit of Rs.6,01,000/- was denied to M/s. EIFCO Machine Tools Pvt. Ltd. The issue revolved around the use of non-duty paid scrap by M/s. EIFCO Machine Tools and availing CENVAT credit based on Central Excise invoices from M/s. Chennai Steels. The Commissioner (Appeals) relied on statements of various individuals. The Tribunal considered the submissions and directed M/s. EIFCO Machine Tools Pvt. Ltd. to predeposit Rs.2,50,000/-. 2. Imposition of Penalty on M/s. Chennai Steels: In addition to the denial of CENVAT credit to M/s. EIFCO Machine Tools, a penalty of Rs.3,15,551/- was imposed on M/s. Chennai Steels. The Tribunal directed M/s. Chennai Steels to predeposit Rs.30,000/- within a specified period. Compliance was to be reported by a certain date, and upon such deposit, predeposit of the balance dues was waived, and recovery stayed during the pendency of the appeals. 3. Applicability of Tribunal's Decision in Sueera Alloys Global Pvt. Ltd. Case: The learned AR representing the Revenue cited a previous Tribunal decision in the Sueera Alloys Global Pvt. Ltd. case, where a predeposit of 50% of the duty was directed. The counsel for M/s. EIFCO Machine Tools Pvt. Ltd. argued that the statements recorded in 2008 could not be corroborated with the facts of the present case, which pertained to the period of 2005-06 and 2006-07. The Tribunal considered this argument but ultimately followed its decision in the Sueera Alloys Global Pvt. Ltd. case and directed the predeposit amounts for both parties. Overall, the judgment addressed the issues of denial of CENVAT credit, imposition of penalties, applicability of previous decisions, predeposit requirements, and the stay on recovery during the appeal process. The Tribunal's decision was based on careful consideration of submissions from both sides and in line with relevant legal precedents.
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