2005 (1) TMI 516 - AT - Central Excise

Summary

The Appellate Tribunal (CESTAT, New Delhi) considered an application by M/s. Ajanta Tubes Ltd. seeking waiver of pre-deposit of Central Excise duty amounting to Rs. 3,07,844/-. The appellant argued that although the Revenue disallowed Modvat credit on the ground that the processes performed (end facing, hydro testing, galvanization, stamping) did not constitute manufacture, the pipes and tubes were cleared on payment of duty exceeding the credit claimed. The appellant contended that this duty payment should be regarded as a "reversal of Modvat credit." The Revenue did not dispute that duty was paid on clearance. The Tribunal found a "strong prima facie case" favoring the appellant and held that the duty payment could be treated as reversal of Modvat credit. Accordingly, the Tribunal ordered a stay on recovery of the confirmed amount pending appeal. The appeal was scheduled for regular hearing on 31-3-2005.