2014 (1) TMI 1107 - AT - Central Excise

Reversal of CVD - Waiver of Pre-deposit Held that - The applicant had cleared 830 Nos. of wheels on reversal of CVD which were availed as credit in their Sodepur Unit - Assessee contended that they were not even required to reverse the said CVD sets as the same were imported against DEEC Scheme without payment of CVD & SAD assessee had made an offer to deposit Rupees Ten Lakhs as pre-deposit which is accepted upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues involved: Application for waiver of pre-deposit of duty and penalty under Rule 15(2) of Cenvat Credit Rules read with Section 11AC of CEA, 1944.

Analysis:
1. The appellant imported wheel sets to be used in Railway Wagons, with some imported under the DEEC scheme without payment of duty. Upon transferring some sets to their own unit, they reversed the credit availed on CVD but not on SAD. The appellant argued that the reversal of CVD was unnecessary as the wheels were imported duty-free under the DEEC Scheme.

2. The respondent, however, contended that the appellant failed to prove that the wheels cleared to their unit were part of the DEEC Scheme lot.

3. After hearing both sides and reviewing the records, it was found that the appellant cleared 830 wheel sets by reversing the CVD credit, claiming they were not required to do so due to the DEEC Scheme import. Despite this, the appellant offered to deposit Rs. 10.00 Lakhs, which was accepted. The appellant was directed to make this pre-deposit within four weeks, with the balance dues waived and recovery stayed during the appeal's pendency. The appeal was disposed of accordingly.