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Appellant's CENVAT credit eligibility disputed over steel items, Tribunal grants waiver but upholds interest liability. The appellant's eligibility for CENVAT credit on steel items was contested due to conflicting decisions and a clerical error leading to availed credit. ...
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Provisions expressly mentioned in the judgment/order text.
Appellant's CENVAT credit eligibility disputed over steel items, Tribunal grants waiver but upholds interest liability.
The appellant's eligibility for CENVAT credit on steel items was contested due to conflicting decisions and a clerical error leading to availed credit. The Tribunal acknowledged the ambiguity before a specific case and granted a waiver of pre-deposit upon partial payment. However, the liability for interest on the availed credit remained. The appellant was directed to deposit a specified amount within a set timeframe to continue the appeal process with a stay on recovery.
Issues involved: - Eligibility for CENVAT credit on steel items - Time-barred demand of CENVAT credit - Invocation of extended period of limitation - Intentional availing of credit due to clerical error - Basis of bona fide belief - Waiver of pre-deposit - Liability for interest on CENVAT credit
Eligibility for CENVAT credit on steel items: The issue revolved around whether the appellant was entitled to CENVAT credit of Rs. 55,39,230 on various steel items used for supporting structures in the factory. The appellant argued that the demand was time-barred, citing conflicting decisions before the Vandana Global Ltd. case. The appellant also contended that the availed credit of Rs. 16,79,500 was due to a clerical error and was promptly reversed. The Additional Commissioner argued that the extended period was rightly invoked due to lack of bona fide belief and non-disclosure in returns.
Invocation of extended period of limitation: The Tribunal acknowledged the conflicting views on availing CENVAT credit on steel items before the Vandana Global Ltd. case. Considering the conflicting decisions during the relevant period, the Tribunal found that the appellant had made a case for waiver of pre-deposit. However, the Tribunal noted that the appellant had not deposited the interest on the availed credit of Rs. 16,79,500, which was an admitted liability.
Waiver of pre-deposit: In light of the circumstances, the Tribunal directed the appellant to deposit Rs. 5,00,000 within six weeks. Upon compliance, the requirement of pre-deposit for the remaining dues was waived, and the stay of recovery was granted during the appeal's pendency. The decision was pronounced and dictated in open court by B. S. V. Murthy.
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