2013 (10) TMI 1140 - AT - Central Excise

Tribunal grants waiver of pre-deposit on cenvat credit & penalty

M/s Berger Paints India Ltd. Versus Commissioner of Central Excise, Kol. II

The Appellate Tribunal CESTAT KOLKATA granted the applicant's request for waiver of pre-deposit of cenvat credit and penalty under Section 11AC of the ... Input Service Distributor – Waiver of Pre-deposit of Cenvat credit and Penalty - Held that:- The applicant had made a categorical statement about the error in computation of the demand while filing their reply to the respective show-cause notices - the Commissioner has recorded the tables in the order but failed to record any findings on the same - The A.R. for the Revenue also could not place before us anything contrary to the claim of the applicant - there is no other option but to accept the submissions made by the C.A. for the applicant that prima-facie, the total liability for the said period post registration as ‘Input Service Distributor’ is around Rs.53.00 lakhs - The claim of the ld. C.A is that they have already deposited an amount of Rs.19.00 lakhs - the applicant directed to deposit of Rs.5.00 lakhs (Rupees five lakhs only) – upon such submission the balance amount of all dues would stand waived and its recovery stayed during pendency of the appeal – Partial Stay granted. Issues: Application for waiver of pre-deposit of cenvat credit and penalty under Section 11AC of the Central Excise Act, 1944.In this judgment by the Appellate Tribunal CESTAT KOLKATA, the applicant sought a waiver of pre-deposit of cenvat credit amounting to Rs.6.98 Crores and an equal penalty imposed under Section 11AC of the Central Excise Act, 1944 read with Rule 15 (2) of Cenvat Credit Rules, 2004. The applicant had availed cenvat credit based on invoices issued by Depots registered under Input Service Distributor after a specific date. The demand notice was issued on the grounds that the invoices from the Depots were invalid due to registration issues. The applicant admitted that a portion of the amount was indeed prior to the registration of the Depot as an input service distributor. The Tribunal noted that the Commissioner failed to address the applicant's claim of computation error in the demand. After considering the submissions and records, the Tribunal accepted the applicant's claim that the total liability post-registration as 'Input Service Distributor' was around Rs.53.00 lakhs. The Tribunal directed the applicant to deposit Rs.5.00 lakhs within six weeks, with the balance amount waived and recovery stayed during the appeal process. The Revenue was given liberty to verify the claimed payment of Rs.19.00 lakhs and approach the Tribunal in case of any discrepancies, thereby disposing of the stay petition accordingly.