2013 (11) TMI 23 - AT - Central Excise

Tribunal waives pre-deposit & penalty in duty credit case, suspends recovery

The Appellate Tribunal CESTAT NEW DELHI allowed Ms. Archana Wadhwa's appeal, waiving the pre-deposit condition and penalty. The Tribunal held that there ... Reversal of Cenvat Credit on inputs written off - Waiver of Pre-deposit of Duty and Interest – Held that:- The provision of Rule 3 (5) (B) require reversal of Cenvat credit in respect of raw materials which were written off, was introduced with effect from 01.05.2007 - as long as the inputs on which the credit has been availed, are within the factory but the same are written off from the records, the credit is not required to be reversed - the revenue has not alleged any clandestine removal of the cenvatable inputs - the applicant has a good prima facie case so as to dispense with the condition of pre-deposit of duty and interest - Penalty and recovery stayed during the pendency of the appeal – Stay granted. The Appellate Tribunal CESTAT NEW DELHI, in the case of Ms. Archana Wadhwa, allowed the appeal and dispensed with the pre-deposit condition of Rs.5,14,243.00/- along with penalty. The Tribunal found that the applicant had a prima facie case as the credit of duty involved in raw materials written off during 2005-06 was not required to be reversed. Penalty and recovery were stayed during the appeal.