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2014 (3) TMI 481 - AT - Central ExciseDenial of CENVAT credits - Waiver of pre deposit - Excess credit over what were admissible to the appellant in terms of the formula prescribed under Rule 3(7) of the CENVAT Credit Rules, 2004 - Held that - Following earlier preceedents in similar issue - Assessee directed to pre-deposit 50% of the CENVAT credit - Conditional stay granted.
Issues: Impugned demands arising from excess CENVAT credits, compliance with pre-deposit order, penalties, interest, and stay.
Analysis: 1. Impugned Demands: The judgment deals with demands arising from the denial of CENVAT credits taken in excess of what was admissible to the appellant under Rule 3(7) of the CENVAT Credit Rules, 2004. The appellant relied on a stay order from a previous case involving a similar issue, where the appellant was directed to pre-deposit 50% of the disputed CENVAT credit. 2. Pre-Deposit Order: The appellant, in response to a query from the Bench, confirmed that the total amount of CENVAT credit denied in the present appeals was around Rs. 3 lakhs, which was not disputed. Following the precedent set in the cited case, the appellant was directed to pre-deposit Rs. 1,50,000 within six weeks and report compliance to the Deputy Registrar by a specified date. The compliance report was to be presented to the Bench subsequently. 3. Penalties and Interest: Subject to the appellant's compliance with the pre-deposit order, the judgment provided for a waiver and stay concerning the penalties imposed on the appellant, as well as the remaining amount of CENVAT credit and the interest accrued thereon. This decision indicates a conditional relief for the appellant based on timely compliance with the pre-deposit directive. In conclusion, the judgment addressed the issue of excess CENVAT credits, mandated a pre-deposit amount, specified reporting requirements, and outlined the conditions for waiver and stay of penalties and interest. The decision was based on a previous stay order and aimed to ensure compliance with the applicable rules and regulations governing CENVAT credits.
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