Court waives penalty pre-deposit for Cenvat Credit dispute, stay granted pending appeal The court acknowledged that the disputed Cenvat Credit amount had been paid, waiving the pre-deposit of penalty for M/s. Arihant Metal Company and its ...
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The court acknowledged that the disputed Cenvat Credit amount had been paid, waiving the pre-deposit of penalty for M/s. Arihant Metal Company and its employees. The recovery of the penalty was stayed until the appeals were disposed of. The stay applications were allowed, and the order was pronounced in open court.
Issues: Allegation of issuing invoices without supply of goods leading to Cenvat Credit confirmation and penalty imposition.
Analysis: The case involves M/s. Arihant Metal Company (AMC) and their employees, Sh. Siddharth Baid and Sh. Rahul Baid, who are alleged to have issued invoices to a manufacturer without supplying the goods mentioned in the invoices. This resulted in the manufacturer claiming credit of Rs. 42,048. The Original Adjudicating Authority confirmed the Cenvat Credit of Rs. 42,048 and imposed a penalty of an equal amount on both AMC and its employees, Sh. Siddharth Baid and Sh. Rahul Baid. The Commissioner (Appeals) upheld this decision, leading to the filing of appeals along with a stay application.
During the hearing, Sh. Hemant Bajaj, the counsel for the appellant, argued that the disputed Cenvat Credit amount had already been paid by M/s. Arihant Metal Company on behalf of the manufacturer. Therefore, he requested that the requirement of pre-deposit of penalty from the appellants should be waived for the hearing of their appeals. On the other hand, Sh. R.K. Mathur, the authorized representative, opposed the stay application, emphasizing that the issuance of bogus invoices by the appellant warranted a penalty.
After considering the arguments from both sides, the judge, Mr. Rakesh Kumar, acknowledged that the disputed Cenvat Credit demand had been paid. Consequently, he waived the requirement of pre-deposit of penalty from AMC and their employees, Sh. Siddharth Baid and Sh. Rahul Baid, for the hearing of the appeals. The recovery of the penalty was also stayed until the disposal of the appeals. Ultimately, the stay applications were allowed, and the order was dictated and pronounced in the open court.
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