Tribunal Grants Stay Petition in CENVAT Credit Rule 15 Case

The Tribunal allowed the Stay Petition in the case involving an application for waiver of demand, interest, and penalty under Rule 15 of CENVAT Credit Rules, 2004. The appellant's contention that they irregularly availed CENVAT Credit for non-excisable inputs was supported by a previous ruling, leading to a prima facie case for total waiver of the duty demand, interest, and penalty. As a result, the pre-deposit amounts were waived, with recovery stayed pending the Appeal, which was directed to be listed in due course.

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Issues: Application for waiver of demand, interest, and penalty under Rule 15 of CENVAT Credit Rules, 2004.

Analysis:
1. The application sought waiver of a demand amounting to Rs.77,483/- along with interest and imposition of an equal amount of penalty under Rule 15 of CENVAT Credit Rules, 2004.
2. The appellant argued that they irregularly availed CENVAT Credit for the period November 2006 to May 2007 on various inputs, specifically Bolder Slag, which was non-excisable during that time. They contended that they should not be required to pay 10% of the product price demanded from them since Bolder Slag only became excisable after an amendment in May 2008.
3. The Revenue, represented by the A.R., maintained the contentions of the lower authorities, stating that the appellant had shown the quantity of Bolder Slag generated in their ER-1 and had agreed to pay the amount from the date of the amendment.
4. The Tribunal referred to a previous ruling in the case of Tata Metaliks Ltd. vs. Commissioner, C. Ex., Kolkata-II, where it was held that Granulated Slag generated in the manufacture of pig iron was not excisable until it became so in May 2008. Considering this, the Tribunal found that the appellant had a strong prima facie case for total waiver of the duty demand, interest, and penalty. Consequently, the Stay Petition was allowed, and the pre-deposit of the amounts adjudged, along with interest and penalty, was waived, with recovery stayed during the pendency of the Appeal. The Appeal was directed to be listed in due course.

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