ORDER
T. Anjaneyulu, Member (J)
1. This is an application filed under Section 35F of the Central Excise Act for granting full waiver of pre-deposit amount and stay its recovery as ordered in the impugned Order dated 15.10.2004.
2. The duty confirmed is that of Rs. 87,22,254/- and ordered reversal/recovery of Cenvat credit of the same under Section 11A(1) of the Central Excise Act, 1944, read with Rule 12 of Cenvat Credit Rules, 202, apart from imposing equal amount of penalty and interest under Section 11AB.
3. The appellants are, inter alia, engaged in the manufacture of non-ferrous metal products and Stainless Steel products. The manufacturing range of the applicants comprises of variety of products like strips, Busbars, Bus-bar flats, Rods, Foils, Profiles and Sections. For the manufacture of the aforesaid products, the applicants use duty paid inputs like Wire-bars, Wire Rods, Cathods, Scraop, Copper bars, Sheets, etc. Except for one consignment of wire supplied to M/s. Speed-O-Controls Pvt. Ltd. from lot supplied vide Bill No. 393 dated 20.01.2003 and involving Cenvat credit of Rs. 10,701/-, none of the products involve the activity of mere redrawing. All the other products undisputedly attract duty as the process carried out by the applicants falls within the definition of manufacture as envisaged by the Central Excise Act, 1944. These facts are easily verifiable from the copies of the invoices, the production register and the P.G. 23-A, Part I & II records submitted to the Department periodically as per the statutory provisions.
4. A Show Cause Notice dated 05.02.2004 seeking to recover the Cenvat credit amounting to Rs. 87,22,254/- availed during the period January 2003 to December 2003 was issued to the applicants.
5. It is pointed out that the ld. Commissioner has passed the impugned order in gross violation of justice of natural justice without considering vital submissions made by them. The ld. Commissioner failed to appreciate that the applicants cleared their products after discharge of duty at the appropriate rate; the manufacturing range of the applicants comprising a wide spectrum of products like strips, Bus-bars, Bus-bar flats, Rods, Foils, Profiles and Sections.
6. The ld. Commissioner failed to appreciate that as regards the solitary consignment of wire supplied to M/s. Speed-O-Controls Pvt. Ltd. vide Bill No. 393 dated 20.01.2003 and involving Cenvat credit of Rs. 10,000/- was concerned, it had been specifically submitted that the applicants had already debited the amount of Rs. 10,701/- against entry No. 61, page No. 271 dated 30.06.2004 of RG 23 A, Part-II.
7. Having considered the aforesaid facts and circumstances and the debit entry made in respect of single consignment where Cenvat credit is involved, we are of the view that the appellants are entitled for waiver of pre deposit amount and stay thereof. Accordingly, full waiver of pre-deposit amount is granted and its recovery is stayed. Application is disposed off accordingly.
(Pronounced in Court)