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2013 (7) TMI 398 - CESTAT BANGALOREStay Application – Waiver of Pre-deposit - The CENVAT credits in question were denied on steel rounds, alloy steel rounds etc., which were fed into the manufacturing stream but rejected midway. The cost of such materials was recovered from the supplier - Department required the appellant to reverse the CENVAT credit which was taken on the said materials by the appellant treating them as inputs – Held that:- Two essential conditions of CENVAT credit on inputs are that the duty-paid nature of the goods should be established and that the goods should be shown to have been used in the manufacture of the finished products (final Products) - Materials were rejected midway and were not contained in the finished products - cannot be held to have been used in the manufacture of the final products – Also, cost of the rejected materials was recovered by the assessee from their suppliers – Moreover, the appellant not pleaded financial hardship - Directed to predeposit an amount of Rs.1,50,000/- (rupees one lakh fifty thousand only) - Waiver and stay in respect of the penalties imposed on them and the balance amount of CENVAT credit till the final disposal of the appeal.
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