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of <h1>Tribunal Waives Service Tax Demand & Allows CENVAT Credit</h1> <h3>M/s. Uttam Toyota Versus C.C.E. &S. T., Ghaziabad</h3> The Tribunal granted full waiver and stayed the recovery of the demand of service tax on spare parts value during the appeal, noting the arguable case ... Waiver of pre deposit - value of the spare parts used in providing authorised service station service has not been included - Held that:- For a similar (impugned) demand of service tax in the appellant s own case [2011 (1) TMI 728 - CESTAT, NEW DELHI], CESTAT has granted full waiver and unconditional stay. As regards CENVAT credit, the services involved are e.g., maintenance and repair service, courier service, mobile phone service, chartered accountant service, cleaning services consultancy service and security agency service. The appellants have an arguable case that these constituted input services. In the light of the foregoing, we grant full waiver from pre-deposit and stay recovery of the impugned liabilities during pendency of the appeal. - Stay granted. Issues:1. Demand of service tax on spare parts value in authorized service station service.2. Denial of CENVAT credit on certain services as input services.Issue 1: Demand of service tax on spare parts valueThe case involved an appeal against an Order-in-Original confirming a service tax demand of Rs. 1,00,31,399 on the ground that the value of spare parts used in providing authorized service station service was not included. The appellant, a dealer of a motor company, contended that spare parts were not integral to the service provided. The Departmental Representative argued that spare parts were essential and their value should be included in the service tax calculation. The appellant cited a previous Tribunal decision where full waiver and unconditional stay were granted in a similar case. After considering both arguments, the Tribunal granted full waiver and stayed the recovery of the demand during the appeal, noting the arguable case presented by the appellants.Issue 2: Denial of CENVAT credit on certain servicesThe second issue pertained to the denial of CENVAT credit amounting to Rs. 5,17,266 on services like maintenance, repair, courier, mobile phone, chartered accountant, cleaning, consultancy, and security agency services. The appellant argued that these services were utilized for providing output services, making the credit admissible. The Tribunal acknowledged that the services in question could be considered as input services, including maintenance and repair services, courier services, and others listed. In light of this, the Tribunal granted full waiver from pre-deposit and stayed the recovery of the impugned liabilities during the pendency of the appeal, recognizing the appellant's argument regarding the admissibility of CENVAT credit on the services utilized for providing output services.This detailed analysis of the judgment highlights the key issues addressed by the Tribunal, the arguments presented by both sides, and the reasoning behind the decisions made regarding the demand of service tax on spare parts value and the denial of CENVAT credit on certain services.
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