2011 (1) TMI 1347 - AT - Central Excise

Summary

Issues involved: Application for stay of recovery order u/s wrongful availment of cenvat credit based on bogus invoices.

Summary:
The case involved an application for stay of an order dated 07/10.09.2009, which demanded the recovery of a significant amount u/s wrongful availment and utilization of cenvat credit. The allegations were related to the procurement of PVC compound necessary for manufacturing PVC insulated wires and cables from a specific company, M/s Kashish Products Impex Pvt. Limited, through bogus invoices. The Commissioner found the charge against the appellants to be established based on statements and evidence, while the appellants argued that the charge was unsubstantiated as they had proper records and documentation. The appellants were not allowed to cross-examine key witnesses, raising concerns about the principles of natural justice. The Tribunal noted that the findings were based on statements without proper verification and raised doubts about the denial of the right to cross-examination. Considering the financial difficulties faced by the appellants, the Tribunal granted a prima-facie waiver of the amount demanded under the impugned order until the appeal's disposal.