2009 (4) TMI 595 - AT - Central Excise

Summary

Issues involved: Application for waiver of pre-deposit and stay of recovery of service tax credit and penalty imposed on the appellants.

Summary:
The appellants filed an application seeking waiver of pre-deposit and stay of recovery of an amount related to inadmissible credit of service tax availed during a specific period and a penalty imposed on them. The case involved the erection and commissioning of windmills at Coimbatore, with the power generated being supplied to Tamilnadu Electricity Board (TNEB) under a contract. The lower authorities denied the credit of service tax paid for the windmills based on a previous Tribunal decision. The appellants argued that the power generated was consumed in their factory for manufacturing final products. They also contended that the Show Cause Notice issued was beyond the normal period of limitation. The authorized representative cited a similar case where the Tribunal had allowed credit for input services not rendered within the factory premises. The Tribunal, after considering the case records and submissions, found that the appellants had a prima facie case against the impugned demand and penalty, based on relevant case law. Consequently, the Tribunal ordered a complete waiver of pre-deposit and stay of recovery of the demand and penalty pending the appeal decision.