Tribunal grants stay petition, allowing appeal on eligibility of cenvat credit for Garden Maintenance Service

The stay petition sought waiver of pre-deposit for an amount confirmed as ineligible cenvat credit, interest liability, and penalty. The Tribunal allowed the stay petition for disposal of the appeal, focusing on the eligibility of availing cenvat credit for service tax paid on Garden Maintenance Service. Relying on precedent decisions and a consent order by the Gujarat Pollution Control Board, which required the use of effluent water for gardening within factory premises, the impugned order was set aside, and the appeal was allowed.

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Issues involved: Stay petition for waiver of pre-deposit of an amount confirmed as ineligible cenvat credit, interest liability, and penalty.

Summary:
The stay petition was filed seeking waiver of pre-deposit of an amount of Rs. 1,29,459 confirmed as ineligible cenvat credit, interest liability, and penalty. The appellant had availed cenvat credit of service tax paid on Garden Maintenance Service. The Tribunal found that the appeal could be disposed of at that stage, and accordingly, the stay petition was allowed for disposal of the appeal. The issue focused on the eligibility to avail cenvat credit of service tax paid on Gardening Services. The appellant relied on judgments of the coordinate Bench in similar cases, citing the consent order by the Gujarat Pollution Control Board, which mandated the use of effluent water for Gardening and Plantation within the factory premises. Following precedent decisions, the impugned order was set aside, and the appeal was allowed.

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