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2013 (11) TMI 1126 - AT - Central ExciseInvoices issued without supply of goods Waiver of Pre-deposit - Held that - The disputed amount of Cenvat Credit demand stands paid, the requirement of pre-deposit of penalty from Arihant Metal Company (AMC) and their employees is waived for hearing of the appeals and recovery stayed till disposal of the appeals - stay granted.
Issues: Allegation of issuing invoices without supply of goods leading to Cenvat Credit confirmation and penalty imposition.
Analysis: The case involves M/s. Arihant Metal Company (AMC) and their employees, Sh. Siddharth Baid and Sh. Rahul Baid, who are alleged to have issued invoices to a manufacturer without supplying the goods mentioned in the invoices. This resulted in the manufacturer claiming credit of Rs. 42,048. The Original Adjudicating Authority confirmed the Cenvat Credit of Rs. 42,048 and imposed a penalty of an equal amount on both AMC and its employees, Sh. Siddharth Baid and Sh. Rahul Baid. The Commissioner (Appeals) upheld this decision, leading to the filing of appeals along with a stay application. During the hearing, Sh. Hemant Bajaj, the counsel for the appellant, argued that the disputed Cenvat Credit amount had already been paid by M/s. Arihant Metal Company on behalf of the manufacturer. Therefore, he requested that the requirement of pre-deposit of penalty from the appellants should be waived for the hearing of their appeals. On the other hand, Sh. R.K. Mathur, the authorized representative, opposed the stay application, emphasizing that the issuance of bogus invoices by the appellant warranted a penalty. After considering the arguments from both sides, the judge, Mr. Rakesh Kumar, acknowledged that the disputed Cenvat Credit demand had been paid. Consequently, he waived the requirement of pre-deposit of penalty from AMC and their employees, Sh. Siddharth Baid and Sh. Rahul Baid, for the hearing of the appeals. The recovery of the penalty was also stayed until the disposal of the appeals. Ultimately, the stay applications were allowed, and the order was dictated and pronounced in the open court.
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