2014 (2) TMI 873 - AT - Central Excise

Judge grants 100% waiver of pre-deposit, stays recovery during appeal. Final hearing set for 21.01.2014

M/s AIA ENGINEERING LTD Versus COMMISSIONER OF CENTRAL EXCISE

The judge granted a 100% waiver of pre-deposit for all dues against the assessee and stayed the recovery of duty, interest, and penalty during the appeal ... Waiver of pre-deposit - Cenvat credit on the service tax paid on the input services - Notification No. 8/2005-ST, dated 1.3.2005- Whether Cenvat Credit of service tax paid by a job-worker on the taxable service received by the respondent is liable to be denied to the latter on the ground that the job worker was not liable to pay the tax by virtue of exemption Notification No. 8/2005-ST, dated 1.3.2005 - Held that:- issue involved in this case is squarely covered by the decision of Federal Mogul TPR India Ltd. vs. CCE Bangalore - [2010 (5) TMI 350 - CESTAT, BANGALORE] and CCE v. Laxmi Metal Pressing Works Pvt. Ltd. - [2009 (10) TMI 181 - CESTAT, MUMBAI] therefore, the assessee has made out a case for 100% waiver of pre-deposit of all dues adjudged against them. Accordingly, I grant waiver of the requirement of pre-deposit of duty, interest and penalty and stay recovery thereof during the pendency of the appeals - Stay granted. Issues involved:Seeking waiver of pre-deposit of CENVAT credit denied due to service tax paid by jobworker under Notification No. 8/2005-S.T.Analysis:The assessee requested a waiver of pre-deposit of CENVAT credit denied because the jobworker paid service tax, which the revenue argued was unnecessary under Notification No. 8/2005-S.T. The jobworker issued invoices to the assessee, who took credit for the tax paid. The revenue contended that the jobworker was not required to pay the tax and thus denied the CENVAT credit. Both the assessee and the revenue appealed the decision, with the assessee filing a Cross Objection after a seven-day delay. The judge, considering the reason for the delay satisfactory, condoned it.The judge found that the issue at hand was similar to previous decisions such as Federal Mogul TPR India Ltd. vs. CCE Bangalore and CCE v. Laxmi Metal Pressing Works Pvt. Ltd. Based on these precedents, the judge granted a 100% waiver of pre-deposit for all dues against the assessee. Additionally, the judge stayed the recovery of duty, interest, and penalty during the appeal process. Given the alignment of the current case with previous tribunal decisions, the judge scheduled the matter for final hearing on 21.01.2014.