By TIOL News Service

MUMBAI, DEC 21, 2012: THIS is an application for Stay by the Revenue against an order-in-original passed by the CCE, Pune-I.

It is contention of the Revenue that the show cause notice was issued for denial of credit of Rs.5.91 Crores which the respondents had wrongly taken in respect of the bought out items which were not required for their final product nor the value of such goods were added to the assessable value of the finished goods. Inasmuch as the finding of the adjudicating authority that the respondents are entitled to claim rebate (provided they satisfy the Jurisdictional Central Excise officer that the impugned goods have in fact been exported and also that all other conditions are satisfied) is beyond the scope of show cause notice is the submission of the Revenue and hence the application for Stay.

The respondent assessee submitted that they had also filed an appeal against the impugned order and the Tribunal vide Stay order dt. 1.08.2012 waived the pre-deposit of dues after taking into consideration the fact that the amount of credit is already reversed and that the appeal is pending.

The Bench observed -

"5. We find that the show cause notice was issued to deny the credit wrongly availed by the respondent in respect of the bought out items, the value of which is not included, in the assessable value of the finished goods. The adjudicating authority confirmed the demand of CENVAT Credit availed by the applicant. In these circumstances, we direct that the rebate claim if filed by the respondents to be kept pending till the disposal of the appeal.

6. Registry is directed to list this appeal along with Appeal no. E/1094/2012-Mum."

In passing: Max to Max for "interest" see 2008-TIOL-1089-CESTAT-MUM.

(See 2012-TIOL-1908-CESTAT-MUM)