2014 (4) TMI 727 - AT - Service Tax

Appellate Tribunal grants waiver & stay for service tax credit denial in aircraft maintenance & related services

The Appellate Tribunal CESTAT Mumbai granted waiver of predeposit and stay against recovery for service tax credit denied to the appellant for services ... Denial of CENVAT Credit - Denial on the ground that the credit had nothing to do with the business of manufacture of the appellant - Held that:- entire demand is beyond the normal time limit of one year and the learned counsel submits that the credit denied is on services like appellant's own aircraft maintenance, airport services, charges paid by the appellant in respect of their own aircraft and air travel agents services and cleaning service (cleaning of toilets has not been considered as a service admissible) - prima facie none of these services can be said to be not relatable to the business of manufacture of the appellant. Therefore, there shall be waiver of predeposit and stay against recovery during the pendency of appeal - Stay granted. The Appellate Tribunal CESTAT Mumbai allowed waiver of predeposit and stay against recovery during the pendency of appeal for service tax credit denied to the appellant for the period from July 2005 to November 2005. The credit was related to services like aircraft maintenance, airport services, charges paid for their own aircraft, air travel agents services, and cleaning services. The Tribunal found these services to be relatable to the business of manufacture of the appellant.