2014 (1) TMI 1109 - AT - Central Excise

Denial of cenvat credit Proper documents could not be furnished - Held that - CENVAT credit was denied to the party on the ground that the same was taken as excess credit - With regard to the validity of the documents used by the assessee for availing the rest of the credit, the appellant has not made out a prima facie case the appellant is directed to make a pre-deposit the balance amount of CENVAT credit stay not granted.

Summary

Issues: Application for waiver and stay of adjudged dues including CENVAT credit denial and penalty.

Analysis:
The appellant filed an application seeking waiver and stay concerning the adjudged dues, which comprised CENVAT credit denial of Rs. 2,73,056/- and an equal penalty. The appellant reversed certain amounts in the CENVAT account, totaling Rs. 1,45,532/-. The appellant claimed a prima facie case for the balance CENVAT credit, contending that it was denied due to being taken on invalid documents. The counsel argued that the documents were sufficient for credit availment. However, it was found that Rs. 557/- of the credit was denied for being excess. The appellant failed to establish a prima facie case regarding the validity of documents for the remaining credit. The tribunal directed the appellant to pre-deposit the balance CENVAT credit within six weeks and report compliance by a specified date. If compliance is met, there will be a waiver and stay on interest and penalties related to the credit.

This judgment highlights the importance of substantiating a prima facie case when contesting CENVAT credit denial based on document validity. The tribunal's decision underscores the necessity for compliance with pre-deposit requirements within the specified timeline to be eligible for waiver and stay on associated interest and penalties. It showcases the procedural aspects and evidentiary burden placed on appellants in such cases, emphasizing the need for meticulous documentation and legal argumentation to support their claims effectively.