High Court & Tribunal Grant Stay on Pre-Deposit, Accept Canteen Expenses, Waiver Granted

The Hon'ble High Court of Mumbai and the Larger Bench of the Tribunal allowed the appellant's stay petitions for waiver of pre-deposit of duty demand. The appellant's chartered accountant's certification regarding canteen expenses being included in employees' cost was deemed credible, establishing a prima facie case for the waiver. The applications for waiver were granted, and recovery was stayed pending the disposal of appeals.

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Issues involved: Stay petitions for waiver of pre-deposit of duty demand.

Summary:
The issue in this case pertains to the cenvat credit availed by the appellant for service tax paid by the service provider for canteen services. The adjudicating authority initially ruled in favor of the appellant, but the first appellate authority reversed this decision. The issue has been settled by the Hon'ble High Court of Mumbai and the Larger Bench decision of the Tribunal. The appellant's chartered accountant certified that canteen expenses were included in the employees' cost, which the first appellate authority questioned. However, the certification by a competent professional cannot be doubted without contrary evidence. Consequently, the appellant has established a prima facie case for the waiver of pre-deposit, and the applications for waiver are allowed with recovery stayed until the disposal of appeals.

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