ARVIND LTD. Vs. COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD

JUDGEMENT

(1.) THESE stay petitions are filed for the waiver of pre -deposit of an amount of Rs. 10,62,337/ - and Rs. 7,37,055/ - confirmed by the adjudicating authority for improper availment of Cenvat credit and penalties of Rs. 2 lakhs and Rs. 1,50,000/ -. The adjudicating authoritys order has been upheld by the first appellate authority. Hence these stay petitions.

(2.) HEARD both sides and perused the records.

(3.) THE issue involved in this case is regarding the wrong availment of the benefit of concessional rate of duty of exemption Notification No. 59/2008 -C.E., dated 7 -12 -2008 by the appellants herein. Appellants final products were exempted from payment of duty by Notification No. 29/2004 -C.E., dated 9 -7 -2004, and further amended by Notification No. 59/2008 -C.E., dated 7 -12 -2008 and another notification was also issued granting concessional rate of duty for the period from same product. Appellants availed Notification No. 59/2008 -C.E. for clearances made to export, and discharged concessional rate of duty under Notification No. 59/2008 -C.E., for which they filed various rebate claims. In our considered view, the entire case of the Revenue is for reversal of the Cenvat credit taken by the appellant on the inputs used by them for manufacturing and clearing such final products at the concessional rate of duty by not availing the benefit of exemption granted by Notification No. 29/2004. If it is undisputed that the appellant had discharged the duty liability on the final products by availing the benefit of Notification No. 59/2008 -C.E., he has anyway already reversed the amount of Cenvat credit taken by him on the inputs used for manufacturing of such products. Our this view stands fortified by the Honble High Court of Bombay in the case of Mahindra and Mahindra Ltd. - 2011 (267) E.L.T. 39 (Bom.) = 2011 (22) S.T.R. 151 (Bom.). In view of this, we find that the appellant has make out a prima facie case for the waiver of the pre -deposit of the amounts involved. Accordingly, applications for the waiver of the pre -deposit of amounts involved are allowed and recovery thereof stayed till the disposal of appeals. (Dictated & Pronounced in Court)