Appellant ordered to pre-deposit Rs.1 lakh for ineligible CENVAT Credit. Compliance may lead to waiver.

The Tribunal directed the appellant to pre-deposit Rs.1 lakh within eight weeks for ineligible CENVAT Credit. Compliance would lead to further consideration for waiver of the remaining balance, with recovery stayed until appeal disposal.

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Issues involved:
Waiver of pre-deposit of ineligible CENVAT Credit availed by the appellant.

Analysis:
The appellant filed a Stay Petition seeking a waiver of pre-deposit of amounts confirmed as ineligible CENVAT Credit. The Tribunal heard both sides and examined the records. It was noted that the appellant had availed CENVAT Credit of inputs in stock without justification before the Audit party. The appellant failed to provide any evidence to demonstrate the existence of stock on which credit was availed. The Tribunal emphasized the importance of maintaining proper records in manufacturing activities to substantiate claims. As the appellant did not produce any such records, the Tribunal found the appellant had not established a case for a complete waiver of the amounts involved.

Decision:
The Tribunal directed the appellant to pre-deposit an amount of Rs.1 lakh within eight weeks and report compliance before the Deputy Registrar. Upon verification of compliance, the file would be placed before the Bench for further orders. Subject to compliance with the pre-deposit, the application for waiver of the remaining balance was allowed, and recovery thereof stayed until the appeal's disposal.

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