Cenvat credit on inputs destroyed at job worker's premises: waiver of further pre-deposit and stay of recovery granted.

Waiver of further pre-deposit was granted in appeals involving reversal of Cenvat credit on inputs sent to a job worker and destroyed in a fire at the job worker's premises, where the loss was intimated to the local authorities as required. The Tribunal found prima facie support in an earlier order in the same assessee's case, following a Larger Bench ruling, that reversal of credit was not required on these facts. As the amounts already deposited were considered sufficient for hearing the appeals and a remission application was pending, recovery of the balance amounts was stayed until disposal of the appeals.

---

---

Issues: Whether waiver of pre-deposit of the disputed amounts and stay of recovery of the balance amounts should be granted in the appeals concerning reversal of Cenvat credit on inputs sent to a job worker and destroyed in a fire accident.

Analysis: The Tribunal noted that the inputs were sent to a job worker and were destroyed in fire at the job worker's end, with intimation to the local authorities as required by law. It found prima facie support in the earlier order in the appellant's own case, which had followed a Larger Bench ruling, for the view that reversal of Cenvat credit was not required in such circumstances. The amounts already deposited by the appellant were also considered sufficient to hear and dispose of the appeals. In view of the pending remission application, the Tribunal accepted the request for waiver of the remaining pre-deposit.

Conclusion: The waiver applications were allowed and recovery of the balance amounts was stayed till disposal of the appeals.

---