2014 (1) TMI 272 - AT - Central Excise

Availment of cenvat credit on capital goods/inputs - Waiver of Pre-deposit of duty and penalty under Rule 173Q of the Central Excise Rules 1944 read with Section 11AC of the Central Excise Act 1944 Held that - This is a case for appreciation of documents/evidences relating to input invoices and its eligibility to modvat credit during the relevant period - the detailed scrutiny of these documents/evidences on the eligibility of modvat credit against these documents and the eligibility of various items as capital goods/inputs would be decided at the time of disposal of appeal - the applicant failed to make out a prima-facie case in their favour Following Commr. of Central Excise Guntur Vs. Shri Chaitanya Educational Committee 2011 (1) TMI 356 - HIGH COURT ANDHRA PRADESH assessee directed to deposit 50% of the cenvat credit as pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues: Application for waiver of pre-deposit of duty and penalty under Rule 173Q of the Central Excise Rules, 1944 read with Section 11AC of the Central Excise Act, 1944.

Analysis:
- The applicant did not appear despite notice, seeking an adjournment due to a hearing before the Commissioner (Appeals). The Tribunal proceeded to decide the stay application.
- The ld. A.R. for the Department stated that the Commissioner disposed of 44 show-cause notices regarding the availment of cenvat credit on capital goods/inputs during 1995-96 to 1997-1998.
- The Commissioner detailed objections related to the availment of cenvat credit and provided findings on the inadmissibility of credit on various inputs and capital goods during the relevant period.
- The Tribunal noted discrepancies in relevant documents and the eligibility of modvat credit on capital goods. The Commissioner's reasons for denying modvat credit were duly recorded.
- The Tribunal found the case required scrutiny of documents/evidences on modvat credit eligibility against input invoices and the eligibility of items as capital goods/inputs.
- While the applicant did not establish a prima-facie case for total waiver of pre-deposit, the Tribunal directed a 50% deposit of the cenvat credit within eight weeks, citing the interest of Revenue and a High Court case precedent.
- Failure to comply would lead to appeal dismissal, but on depositing the specified amount, the balance dues would be waived, and recovery stayed during the appeal's pendency. The stay petition was disposed of accordingly.