Tribunal stays balance recovery in petitions over ineligible Cenvat credit on construction materials

The Tribunal stayed the recovery of the remaining balance amounts in three petitions concerning ineligible Cenvat credit on TMT Bars and cement used for factory construction. The appellant had already reversed the entire Cenvat credit amount, leading to the Tribunal deeming it sufficient for the hearing and disposal of waiver applications. The recovery was stayed pending verification by lower authorities, with compliance reports due on a specified date.

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Issues: Stay petitions against orders confirming demand of liability of ineligible Cenvat credit on TMT Bars, cement used for construction of factory premises.

Analysis:
1. The appellant filed three stay petitions against orders confirming the demand of liability of ineligible Cenvat credit on items like TMT Bars and cement used for constructing the factory premises.

2. The appellant's counsel stated that they have already reversed the entire amount of Cenvat credit involved in all three petitions since the factory is now closed, and they are unable to deposit any further amount.

3. Upon reviewing the photocopy of the Cenvat credit register and a letter from the appellant to the Superintendent of Central Excise, it was confirmed that the entire Cenvat credit amount in question had been reversed. The Additional Commissioner (AR) requested verification from lower authorities, which was allowed, and a compliance report was due on a specified date.

4. Considering that the Cenvat credit amount had been reversed and pending verification by lower authorities, the Tribunal deemed the reversed amounts sufficient for hearing and disposing of applications for waiver of the remaining balance amounts and stayed the recovery until the appeals were resolved.

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