Tribunal Order: Deposit 25% of Cenvat Credit to Avoid Dismissal

The Tribunal directed the appellant to deposit 25% of the Cenvat Credit amount within eight weeks, failing which the appeal would be dismissed. Upon deposit, the balance amount of dues would be waived, and recovery stayed during the appeal's pendency. The judgment underscores the significance of adhering to procedural requirements under the Cenvat Credit Rules, 2004, and correctly availing cenvat credit at the designated manufacturing unit.

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Issues: Application for waiver of pre-deposit of duty and penalty under Cenvat Credit Rules, 2004

Analysis:
1. The appellant applied for the waiver of pre-deposit of duty amounting to Rs.1,93,23,062/- and an equal penalty imposed under Rule 15 of Cenvat Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944.

2. The consultant for the appellant argued that they are engaged in the manufacture of 'High Carbon Ferro-Chrome' and had availed cenvat credit on inputs services and capital goods used in the manufacture of intermediate products at their Kaliapani Chromite Mine. They contended that the cenvat credit availed was admissible as the finished goods were cleared from their plant at Balasore. The consultant also highlighted that there was no duty evasion and made a fair offer to deposit 25% of the Cenvat Credit involved.

3. The Revenue's representative objected to the appellant availing cenvat credit on capital goods and input services at their Balasore Unit instead of their registered factory at Kaliapani Plant, alleging a violation of Cenvat Credit Rules, 2004.

4. The Tribunal found that the appellant should have availed cenvat credit on capital goods and input services at their Kaliapani Plant as per the rules. The Tribunal noted that the appellant had been regularly filing returns disclosing the cenvat credit availed at their Balasore Unit. Consequently, the Tribunal directed the appellant to deposit 25% of the Cenvat Credit amount within eight weeks, failing which the appeal would be dismissed. Upon deposit, the balance amount of dues would be waived, and recovery stayed during the appeal's pendency.

This judgment emphasizes the importance of complying with the procedural requirements under the Cenvat Credit Rules, 2004 and the proper availing of cenvat credit at the designated manufacturing unit.

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