2013 (11) TMI 1192 - AT - Central Excise

Appellate Tribunal grants waiver for CENVAT Credit pre-deposit in diverse service tax categories

The Appellate Tribunal CESTAT AHMEDABAD granted the appellant's application for waiver of pre-deposit of CENVAT Credit for Service Tax paid on various ... Waiver of Pre-deposit – Cenvat credit on various service providers – Held that:- The appellant is manufacturing various excisable goods - For maintenance of wind mills farm, all expenses were borne by them and Service Tax is paid - Gardening and outdoor catering is in respect of the factory premises of the appellant wherein final products are manufactured - the issue needs to be considered from various angles - the appellant needs to be put to some condition for hearing and disposing the appeal - the appellant directed to deposit an amount of Rupees Fifty Thousands as pre-deposit – upon such submission rest of the duty to be stayed till the disposal – Partial stay granted. Issues Involved:Waiver of pre-deposit of CENVAT Credit availed by the appellant for Service Tax paid by various service providers including maintenance service of wind mills, outdoor catering service, maintenance service of garden, and insurance of wind mills.Analysis:The judgment delivered by Mr. M.V. Ravindran at the Appellate Tribunal CESTAT AHMEDABAD pertained to the issue of waiver of pre-deposit of CENVAT Credit availed by the appellant for Service Tax paid by different service providers. The appellant, engaged in manufacturing excisable goods, had incurred expenses for maintaining a wind mill farm for wind power generation, for which Service Tax was paid. Additionally, expenses for gardening and outdoor catering services related to the factory premises where final products were manufactured. The Tribunal noted the need for a comprehensive examination of the issue from various perspectives. Specifically, for outdoor catering services, the applicability of the decision in the GTC Industries case by the Larger Bench of the Tribunal needed consideration. Regarding the maintenance service of the garden and insurance of wind mills, the judgment of the Hon'ble High Court of Bombay in the Ultratech Cement case was deemed relevant. The High Court had ruled that Service Tax paid on services provided outside the premises was eligible for CENVAT Credit. The Tribunal acknowledged the arguable nature of availing Service Tax on windmill insurance and the requirement to delve into the related provisions. The distinction between statutory and non-statutory maintenance of the garden was highlighted by the appellant, necessitating a thorough evaluation at the final disposal stage of the appeal.The Tribunal, considering the complexities involved, directed the appellant to deposit Rs.50,000 within four weeks and report compliance to the Deputy Registrar by a specified date. Upon verification of compliance, the file would be presented before the Bench for further orders. Subject to the appellant meeting this condition, the application for the waiver of pre-deposit of the amounts in question was granted, and the recovery stayed pending the appeal's final disposal. This decision aimed to ensure a fair and thorough examination of the issues raised, balancing the interests of the appellant and the tax authorities until a definitive resolution could be reached.