2013 (9) TMI 1093 - AT - Central Excise

Tribunal Stay on Service Tax Credit Demand for Gardening Services Upheld, Conditions Set

The Tribunal granted a stay on the service tax credit demand for gardening services, finding merit in the appellant's argument based on relevant ... - Issues involved: Admissibility of CENVAT Credit for gardening services and professional charges paid to a Chartered Accountant for handling drawback related work.Regarding admissibility of CENVAT Credit for gardening services: The appellant argued that the credit is admissible based on favorable judgments from different Benches. The appellant made a prima facie case citing relevant judgments. The Tribunal found merit in the appellant's argument and granted a stay on the service tax credit demand for gardening services pending further consideration.Regarding admissibility of CENVAT Credit for services of Chartered Accountant: The Revenue contended that the services of the Chartered Accountant were not related to the manufacturing activity of the appellant. The Tribunal acknowledged the disputable nature of the issue and directed the appellant to deposit a specified amount within a deadline. The Tribunal ordered a stay on the recovery of remaining amounts pending the disposal of the appeal, subject to the payment of the deposit.The Tribunal's decision was based on a thorough examination of the arguments presented by both parties and the relevant case records. The appellant was required to comply with the specified conditions, including making a deposit and reporting compliance by a certain date. The Tribunal emphasized the need for deeper consideration regarding the admissibility of CENVAT Credit for services related to drawback claims handled by the Chartered Accountant.