2013 (12) TMI 1137 - AT - Central Excise

Waiver of pre-deposit of duty - Imposition of equivalent penalty under Section 11AC - Availment of CENVAT credit on capital goods installed at the adjacent plot to the factory of the applicant which finally merged with the factory of the applicant - Held that - capital goods and the storage tank has merged with the factory of the applicant and if the same are merged with the factory of the applicant, prima facie, I am of the view that applicants are entitled for CENVAT credit. Accordingly, applicant has made out a case for 100% waiver of pre-deposit therefore, I waive the requirement of pre-deposit of entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT Mumbai granted waiver of pre-deposit of duty of Rs. 5,57,233/- along with interest and penalty under Section 11AC of the Finance Act. The appellant availed CENVAT credit on capital goods that merged with their factory, entitling them to the credit. The Tribunal waived the requirement of pre-deposit and stayed recovery during the appeal.