Appeals Before CESTAT after enactment of Finance Bill 2014 - Whether pre-deposit can be made from CENVAT Credit
THE CESTAT Registrar has issued a Circular stating that:
As there is confusion of adjustment of CENVAT credit against mandatory penalty, clarification have been sought from the Competent Authority. (Again the mysterious Competent Authority - who is the Competent Authority to clarify the Registrar's doubt?)
In the absence of any clarificatory circular on the issue, he has directed the Registry officials to register the appeals received on or after 06.08.2014 in the following cases:
1. If the mandatory deposit of duty or penalty has been made in cash and evidence is produced at the time of filing the appeal.
2. If the mandatory deposit of duty confirmed is made from CENVAT account and evidence thereof is produced. (He doesn't tell his staff as to what percentage of duty is to be the mandatory pre-deposit)
3. If the appellants have made deposit of the duty during investigation and if the same is more than the mandatory deposit as stipulated in the amendments.
Wherever further clarification is required the same will be issued after getting clarification from the Competent Authority.
What will he do if the pre-deposit of penalty is made from the CENVAT account? Will such appeals be not accepted by the Registry? Can the registry take such a decision? Should the appellant go to the High Court to get a direction to the Registry to register the appeal ?
CESTAT Circular in F. No. 15/CESTAT/General/2013-14, Dated:August 28, 2014