2007 (11) TMI 286 - AT - Service Tax

Appellate Tribunal CESTAT case on denial of credit under Cenvat Credit Rules, 2004

The Appellate Tribunal CESTAT, New Delhi admitted an appeal concerning denial of credit on specific services under Cenvat Credit Rules, 2004. The ... Admission of appeal - Waiver of pre-deposit - Cenvat credit denial - Prima facie case - Pre-deposit of tax - Pre-deposit of penaltyAdmission of appeal - Admission of the appeal to the Appellate Tribunal. - HELD THAT: - The appeal was admitted by the Tribunal despite non-appearance of the appellant, after hearing the Departmental Representative and perusal of records. The order records admission at the commencement of proceedings and proceeds to consider the application for waiver of pre-deposit. [Paras 1]Appeal admitted.Waiver of pre-deposit - Cenvat credit denial - Prima facie case - Pre-deposit of tax - Pre-deposit of penalty - Application for waiver of pre-deposit of tax and penalty in respect of denial of Cenvat credit on specified services. - HELD THAT: - The Tribunal examined the Commissioner's (Appeals) finding that credit for telephone at residence and services such as personal accident insurance, garden maintenance, canteen building maintenance and street-light repair did not fall within input services under the Cenvat Credit Rules, 2004. The Tribunal found the Commissioner (Appeals)'s conclusion to be prima facie sustainable and held that the appellant had not made out a prima facie case for waiving the entire pre-deposit. In consequence, the Tribunal directed that the entire amount of tax sought to be pre-deposited must be deposited within six weeks, and, upon such deposit, the requirement of pre-deposit of penalty was waived until disposal of the appeal. [Paras 2]Applicant directed to pre-deposit the entire amount of tax within six weeks; pre-deposit of penalty waived upon such deposit until disposal of the appeal; compliance to be reported on the listed date.Final Conclusion: The appeal was admitted. The Tribunal held the Commissioner (Appeals)'s denial of Cenvat credit to be prima facie sustainable, refused complete waiver of the pre-deposit, directed deposit of the entire tax within six weeks and waived the pre-deposit of penalty contingent upon such tax deposit until disposal of the appeal. The Appellate Tribunal CESTAT, New Delhi admitted an appeal regarding denial of credit on certain services under Cenvat Credit Rules, 2004. The applicant was directed to pre-deposit tax of Rs. 42,000/- and penalty of Rs. 4,000/- within six weeks. Pre-deposit of penalty was waived till appeal disposal. Compliance to be reported by 24th December, 2007.