2009 (3) TMI 877 - AT - Service Tax

Appellate Tribunal grants waiver of Service Tax pre-deposit, deems GTA services as input services.

The Appellate Tribunal CESTAT Bangalore granted a complete waiver of pre-deposit of Service Tax amount demanded from the appellants. The Tribunal held ... Waiver of pre-deposit - CENVAT credit - input service - GTA service - Held that: - The appellants received vehicles from Hero Honda. The vehicles have to be necessarily brought to their premises. Therefore, we cannot say that the Service Tax paid under the GTA will not be entitled for credit as input service. Prima facie, the appellants have a strong case on merits - we order complete waiver of pre-deposit of the dues demanded in the impugned order - appeal allowed. The Appellate Tribunal CESTAT Bangalore ordered a complete waiver of pre-deposit of Service Tax amount of Rs. 1,18,673/- demanded from the appellants for alleged irregular input credit. The Tribunal disagreed with the Revenue's view that GTA services cannot be considered as input services for servicing vehicles, stating that the appellants have a strong case on merits. No coercive action by the revenue is allowed until the appeal is disposed of, and the stay order continues even after 180 days.