2012 (10) TMI 378

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.... During Audit of the central excise records of the appellant, it was found that during June, 2008 to March, 2009, they had taken service tax credit amounting to Rs. 45,99,480/- of service tax paid on civil construction work in the factory. The Department was of the view that the service of civil construction work in the factory was not covered by the definition of 'input service' and hence, the appellant were not eligible for the Cenvat credit. On this basis, a show cause notice was issued to the appellant for recovery of allegedly wrongly taken Cenvat credit amounting to Rs. 45,99,480/- along with interest and also for imposition of penalty on the appellant under Rule 15 of the Central Excise Rules, 2004. The show cause notice was adjudica....

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.... (Tribunal) has held that construction services for constructing the coal shed in the factory manufacturing sponge iron were eligible for Cenvat credit, that the Tribunal in the case of C.C.E., Vadodara v. Videocon Industries Ltd. reported in 2009 (14) S.T.R. 692 (Tribunal-Ahmd.) has held that the GTA services used for bringing the goods to the factory for construction relating to setting up of the factory is covered by the definition of 'input service', that in view of this, the impugned order is incorrect, that the appellant have strong prima facie case and hence, the requirement of pre-deposit of Cenvat credit demand, interest and penalty may be waived for hearing of the appeal and recovery thereof be stayed till the disposal of the appe....