2008 (2) TMI 242 - AT - Service Tax

CESTAT Mumbai: Waiver of Pre-deposit & Penalty Allowed for Ineligible Input Credit

The Appellate Tribunal CESTAT Mumbai allowed the waiver of pre-deposit and penalty imposed on the applicant for availing ineligible input stage credit. ... Services of ‘repairs and maintenance work of containers’ - applicant has sub-contracted a part of the work – appellant taking credit of the tax paid by sub-contractor is questioned by revenue - service tax authority at the applicant’s end, do not have power to re-assess the tax paid at supplier’s end and the recipient of the services cannot be called upon to not to avail the credit, as it would amount to re-classification of services rendered - prima facie case for waiver of pre-deposit The Appellate Tribunal CESTAT Mumbai allowed the waiver of pre-deposit of Rs. 9,43,988/- and penalty of Rs. One lakh imposed on the applicant for availing ineligible input stage credit. The applicant, providing 'repairs and maintenance work of containers', subcontracted part of the work to another contractor who paid service tax. The Tribunal found the applicant had made a prima facie case for waiver of balance amounts, and recovery was stayed till appeal disposal.