2013 (2) TMI 568 - AT - Central Excise

Tribunal directs pending rebate claim, aligns with appeal process, addresses denial of wrongly availed credit

The Tribunal directed that the rebate claim by the respondents be kept pending until the resolution of the appeal against the impugned order, which had ... Rebate of the CENVAT credit reversed - assessee also filed appeal against the same impugned order being stayed waiving the pre-deposit of dues after taking into consideration the amount of credit is already reversed - The appeal is pending - Held that:- Show cause notice issued to deny the credit wrongly availed by the assessee in respect of the bought out items, the value of which is not included, in the assessable value of the finished goods. The adjudicating authority confirmed the demand of CENVAT Credit availed by the applicant. In these circumstances, the rebate claim if filed by the respondents to be kept pending till the disposal of the appeal. Issues Involved:1. Stay application filed by Revenue for rebate claim of CENVAT credit reversed.2. Scope of show cause notice in relation to rebate claim.3. Pending appeal against impugned order and waiver of pre-deposit.Analysis:1. The Revenue filed a stay application concerning the rebate claim of CENVAT credit reversed. The impugned order allowed the respondents to claim rebate of the reversed credit if they prove that the goods were exported and all conditions are met. The Revenue argued that the show cause notice was issued for denying credit wrongly taken by the respondents for bought-out items not necessary for the final product, and the impugned order's findings on rebate claim exceeded the notice's scope.2. The respondents contended that they had also filed an appeal against the impugned order, and the Tribunal had granted a stay order waiving the pre-deposit after considering the reversed credit amount. The appeal is still pending. The Tribunal found that the show cause notice focused on denying wrongly availed credit for bought-out items not included in the finished goods' assessable value. The adjudicating authority upheld the demand for the CENVAT credit. Therefore, the Tribunal directed that the rebate claim by the respondents be kept pending until the appeal's resolution.3. In light of the above, the Tribunal directed the registry to list the current appeal along with the pending Appeal no. E/1094/2012-Mum. This comprehensive analysis addresses the issues of the stay application, the scope of the show cause notice concerning the rebate claim, and the status of the pending appeal with the waiver of pre-deposit. The Tribunal's decision ensures a fair consideration of the rebate claim in alignment with the pending appeal process.