Tribunal grants waiver of predeposit & penalties in CENVAT Credit cases, stays recovery pending Appeals.

The Tribunal granted the Applicant's request for waiver of predeposit of CENVAT Credit and penalty in two appeal cases. The Applicant had purchased machineries, availed CENVAT Credit, and faced an inquiry against the supplier. The Tribunal found the Applicant established a prima facie case for total waiver of predeposit of all dues adjudged, similar to a prior case where stay was allowed. Consequently, the Tribunal granted the stay petitions, waived all dues adjudged, and stayed the recovery during the pendency of the Appeals.

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Issues:
1. Waiver of predeposit of CENVAT Credit and penalty in two appeal cases.

Analysis:
In the present case, the Applicant sought waiver of predeposit of CENVAT Credit and penalty in two separate appeal cases. The Applicant had purchased machineries from a supplier and availed CENVAT Credit based on invoices issued by the supplier. An inquiry was initiated against the supplier for alleged non-manufacture and non-supply of goods. The Applicant contended that the goods were received, installed in their factory, and payments were made through 'A/C Payee' Cheques. The Tribunal noted a similar case where unconditional stay was granted, and since the facts were analogous, the Applicant made a prima facie case for total waiver of predeposit of all dues adjudged.

The central issue in the case revolved around the availment of CENVAT Credit by the Applicant on the machineries supplied by the supplier. It was undisputed that the machineries were received and installed in the Applicant's factory, with payment made through 'A/C Pay Cheques'. The Tribunal considered the precedent of a similar case where stay was granted and found that the Applicant had established a prima facie case for total waiver of predeposit of all dues adjudged. Consequently, the Tribunal allowed the stay petitions, waived all dues adjudged, and stayed the recovery during the pendency of the Appeals.

In conclusion, the Tribunal granted the Applicant's request for waiver of predeposit of CENVAT Credit and penalty in the two appeal cases based on the similarity of facts with a previous case where stay was allowed. The Tribunal found that the Applicant had made out a prima facie case for total waiver of predeposit of all dues adjudged and, therefore, granted the stay petitions, waiving all dues adjudged, and staying the recovery during the pendency of the Appeals.

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