Case Law Details
Cenvat Credit relating to service tax paid on Tours & Travels and CHA was in dispute before this Bench in Appeal No. ST/1029/2009, wherein we have granted an unconditional stay of the pre-deposit of the amounts involved. As regards the other services, I find that the Larger Bench decision in the case of GTC Industries will cover the issue of Catering Service and as regards Clearing and Forwarding Service and House Keeping and Cleaning Service, Division Bench of this Tribunal has been taking a consistent view that the assessee is eligible to avail such credit. In view of this, I find that the appellants have made out a prima facie case for the waiver of pre-deposit of the amounts involved. Application for waiver of pre-deposit of the amounts involved is allowed and recovery thereof stayed, till the disposal of the appeal.
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH, BANGALORE
Application Nos. E/St/614 & 615/2010
Appeal Nos. E/1116 & 1117/2010
M/s RESIL CHEMICALS PVT. LTD.
Vs
COMMISSIONER OF CENTRAL EXCISE, BANGALORE
Date of Decision: 05.08.2010
Appellant Rep by: Mr T M Subramanian, Adv.
Respondent Rep by: Ms Sudha Koka, SDR
CORAM: M V Ravindran, Member (J)
STAY ORDER NOS. 691 & 692/2010
Per: M V Ravindran:
These two stay petitions are filed for the waiver of pre-deposit of the following amounts:
In respect of Appeal No. E/1116/2010
i. Service Tax credit Rs. 1,41,258/-
ii. Interest
iii. Penalty of Rs. 1,41,258/-
In respect of Appeal No. E/1117/2010
i. Service Tax credit Rs. 7423/-
ii. Interest
iii. Penalty Rs. 2000/-
2. Heard both sides and perused the records.
3. The issue involved in this case is regarding the Cenvat credit of service tax paid on the following services:
i. House Keeping/ Cleaning Service
ii. Tours & Travels
iii. Outdoor Catering Services
iv. Clearing & Forwarding Agent Service
v. Custom House Agent Service
4. Learned Counsel submits that as regards the Cenvat credit of service tax paid on Tours & Travels service and CHA service, this Bench vide Stay Order No. 300/2010 dated 26.04.2010 in the appellant’s own case has granted a stay. As regards other services, it is his submission that they are all required in the factory for the purpose of manufacturing of final products.
5. Learned SDR on the other hand submits that as regards Catering services, the decision of the Co-ordinate Bench of Chennai in the case of Sundaram Brakes has held that benefit of Cenvat credit on such service tax is not eligible.
6. On a careful consideration and submissions made by both sides, I find that the Cenvat Credit relating to service tax paid on Tours & Travels and CHA was in dispute before this Bench in Appeal No. ST/1029/2009, wherein we have granted an unconditional stay of the pre-deposit of the amounts involved. As regards the other services, I find that the Larger Bench decision in the case of GTC Industries will cover the issue of Catering Service and as regards Clearing and Forwarding Service and House Keeping and Cleaning Service, Division Bench of this Tribunal has been taking a consistent view that the assessee is eligible to avail such credit. In view of this, I find that the appellants have made out a prima facie case for the waiver of pre-deposit of the amounts involved. Application for waiver of pre-deposit of the amounts involved is allowed and recovery thereof stayed, till the disposal of the appeal.
(Pronounced & dictated in open Court)
