2015 (3) TMI 427 - AT - Central Excise

Tribunal Waives Predeposit Requirement Pending Appeal

The Tribunal granted the stay application, waiving the predeposit of duty, interest, and penalty pending appeal resolution, based on evidence from ... Waiver of pre deposit - Reversal of CENVAT credit on GTA service - Held that:- Purchases orders of M/s.BHEL dt. 28.12.2010, 28.5.2011 and 16.6.2011, it is clearly indicated that contract for supply and delivery of goods is on FOR Destination. Considering the above facts and circumstances, I am of the view that applicant has made a prima facie case for waiver of predeposit of the dues. Accordingly, predeposit of entire amount of duty, interest and penalty arising from the impugned order is waived and its recovery is stayed till the disposal of the appeal - Stay granted. Issues:Reversal of CENVAT credit on GTA service availed on outward transport.Analysis:The case involved two stay applications arising from a common order regarding the reversal of CENVAT credit on GTA service used for outward transport. The appellant's advocate argued that the goods were delivered on FOR Destination basis as per the purchase order and commercial invoices provided. He emphasized that the pre-printed statement on the invoice should not be the sole criteria for determining the delivery terms. On the other hand, the Revenue's Authorized Representative contended that the appellant's own invoice indicated that their liability ceased once the goods left the workplace/yard, suggesting a different delivery basis. The lower appellate authority also noted the lack of documentary evidence supporting the sale on FOR Destination basis and requested predeposit of the entire amount.Upon reviewing the purchase orders of M/s. BHEL, the Tribunal found that the contract clearly specified delivery on FOR Destination basis. Considering this evidence, the Tribunal concluded that the appellant had established a prima facie case for the waiver of predeposit of the dues. Consequently, the Tribunal granted the stay application, waiving the predeposit of the duty, interest, and penalty pending the appeal's disposal. The recovery of the amount was stayed until the appeal resolution, as per the Tribunal's decision pronounced on 20/06/2014.