CENVAT credit predeposit waiver denied where invoices and challans lacked proper linkage and supporting documents were missing.

CENVAT credit on input services during a project set-up period was questioned because the challans and invoices were not addressed to the relevant plant and some duty-paying documents were not produced before the adjudicating authority. The Tribunal found these deficiencies sufficient to deny a strong prima facie case for complete waiver of predeposit. Complete waiver was therefore declined, and the appellant was directed to deposit Rs. 1 crore; subject to that deposit, the balance predeposit and recovery were stayed pending disposal of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of predeposit and stay of recovery.

Analysis: The dispute related to CENVAT credit on input services used in a project set-up period. The Tribunal noted that substantial portions of the credit were questioned because the challans and invoices were not addressed to the relevant plant and because some supporting duty-paying documents were not produced before the adjudicating authority. In view of these deficiencies, the Tribunal found that the appellant had not established a strong prima facie case for complete waiver of predeposit.

Conclusion: Complete waiver was declined. The appellant was directed to deposit Rs. 1 crore, and on such deposit the balance predeposit and recovery were stayed pending disposal of the appeal.

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