Cenvat credit on structural steel used in plant fabrication failed to justify full waiver of duty pre-deposit.

In a dispute over Cenvat credit on steel plates, angles, channels and joists used for fabrication of plant and machinery, the Tribunal held that the applicant had not established a prima facie case for complete waiver of pre-deposit of duty. On the materials before it, the Tribunal was not persuaded that the structural steel items qualified for the claimed credit on the basis urged by the applicant. It therefore directed deposit of the duty amount, while granting waiver of pre-deposit of interest and penalty until disposal of the appeal.

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Issues: Whether the applicant had made out a prima facie case for waiver of pre-deposit of duty, interest and penalty in a dispute concerning Cenvat credit on steel plates, angles, channels and joists used for fabrication of plant and machinery.

Analysis: The disputed credit was claimed on structural steel items used in fabrication of plant and machinery at site. On a prima facie view, the Tribunal did not accept the contention that sponge iron, runners and risers could be treated as final products in relation to such items so as to justify the Cenvat credit claim. The applicant therefore failed to show a prima facie case for complete waiver of the duty amount. At the same time, the Tribunal considered the facts and circumstances sufficient to grant protection against pre-deposit of interest and penalty.

Conclusion: The applicant was required to deposit the duty amount, while pre-deposit of interest and penalty was waived until disposal of the appeal.

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