Pre-deposit waiver in Cenvat credit dispute limited where credit was taken on xerox invoices and without duty documents.

Cenvat credit taken without duty-paying documents, and on xerox copies of invoices, was treated as inadmissible, so total waiver of pre-deposit was not justified. The Tribunal held that financial hardship and the company's sickness plea did not extend to pre-deposit under Section 35F of the Central Excise Act, 1944. Partial relief was granted by directing deposit of the amount relatable to the inadmissible credit, while waiver of the balance duty, interest and penalty was allowed for hearing.

---

---

Issues: Whether the applicants were entitled to total waiver of pre-deposit of duty, interest and penalty in view of the alleged financial hardship and the plea of sickness of the company, despite the finding that credit had been availed without duty-paying documents and on xerox copies of invoices.

Analysis: The applicants had availed credit of part of the demand without any duty-paying documents and the balance on the strength of xerox copies of invoices. Such documents were not accepted as valid for availing Cenvat credit. In these circumstances, a case for total waiver was not made out. The plea based on the Sick Industrial Companies (Special Provisions) Act, 1985 was held not to extend to pre-deposit under Section 35F of the Central Excise Act, 1944. Considering the facts, the Tribunal granted only partial relief by directing deposit of the amount relatable to the inadmissible credit and waived the balance for hearing.

Conclusion: Total waiver of pre-deposit was declined. The applicants were directed to deposit the amount corresponding to credit taken without duty-paying documents, and waiver of the remaining duty, interest and penalty was granted.

---