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2015 (12) TMI 253 - AT - Central ExciseWaiver of pre deposit - Duty demand - Denial of CENVAT Credit - Fraudulent credit - Bogus invoices - under reported the production of copper rods by inflating the power consumption - Held that:- Tribunal in respect of the case against M/s V.K. Metal Works has vide stay order has waived the requirement of pre-deposit of the duty demand, interest and penalty and had stayed its recovery by taking a prima facie view that the above-mentioned allegation against them by issuing bogus invoices for copper ingots without manufacturing any activity prima facie is not sustainable. - appellant have prima facie case in respect of the Cenvat credit demand of ₹ 5,50,50,489/- and hence in respect of this Cenvat credit demand unconditional stay has to be granted. Appellant had given the reasons for this fluctuation and according to them this fluctuation is due to power break down or fluctuation in electric voltage resulting in breakdown of manufacturing process resulting in cooling of furnace which requires more consumption of power for re-heating. Prima facie, we find that these factors have not been considered and the Commissioner has arbitrarily adopted the power consumption figure of 346 units per MT as the norm for the entire period. In our prima facie view estimating production on this basis would not be correct when there is absolutely no evidence of unaccounted purchase of raw material. - Stay granted.
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