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2010 (10) TMI 398 - AT - Central ExciseWaiver of pre-deposit - Bogus manufacture - Cenvat credit - The appellant during the period from April 2003 to December 2005 they took Cenvat credit on the basis of the invoices for purchase of HR coils from SAIL, but instead of using those HR coils in their factory for manufacture of CR strips, the HR coils were sold as such, and only bogus manufacture of CR strips was shown in their records and thereafter the sale of CR strips was shown to various customers under their invoices, without actually selling any material and thereby enabling the so called buyers of CR strips to take Cenvat credit on the basis of such bogus invoices - Held that the appellant have not been able to establish prima facie case in their favour and as such it is the Department which has a strong case against them. As regards the conduct of the appellants, the nature of the allegations against them, which prima facie appear to be supported by concrete evidence on record, are of very serious nature and amount to a massive fraud - Decided against of assessee. Waiver of pre-deposit - demand from units engaged in slitting - The units engaged in slitting of the HR coils which had been done by them in respect of the HR Coil received by them from the appellant - It is not the allegations of the department that it is they who are involved in the illicit sale of the HR coils in respect of which Cenvat credit has been taken by the appellant - Held that the requirement of pre-deposit the penalty imposed on them for hearing of their appeals would cause undue hardship - Accordingly, the pre-deposit of penalty of them is waived and the recovery thereof stayed.
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