Conditional pre-deposit granted in Cenvat credit dispute, with recovery stayed pending final disposal of the appeals.

Proceedings concerning alleged issuance of invoices to facilitate ineligible Cenvat credit and penalty under Rule 26 were addressed through a conditional interim measure rather than final adjudication. The recorded statement of the director indicated supply of pet coke without invoices, and the disputed invoices were treated as having been used by others for credit; however, the absence of corroborative material was left for detailed examination at final hearing. Pending disposal of the appeals, partial relief was granted by directing a pre-deposit of Rs. 2,00,000 and staying recovery of the remaining demand and penalties.

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Issues: Whether waiver of pre-deposit and stay of recovery could be granted in proceedings relating to alleged issuance of invoices to facilitate availment of ineligible Cenvat credit and imposition of penalty under Rule 26 of the Central Excise Rules, 2004.

Analysis: The recorded statement of the director indicated supply of pet coke without invoices, and the invoices in question were treated as having been used by others for Cenvat credit. However, the contention that there was no corroborative material against the appellant required detailed examination at the stage of final disposal. In the meantime, a conditional approach was warranted by directing a partial pre-deposit and granting stay on the balance demand and penalties.

Conclusion: Waiver was granted only to the extent of the balance amount after directing a pre-deposit of Rs. 2,00,000, and recovery of the remaining amounts was stayed pending disposal of the appeals.

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