2009 (5) TMI 814 - AT - Service Tax

Summary

Issues: Stay petition for waiver of pre-deposit of Service Tax and penalty under Rule 15(3) of the Cenvat Credit Rules, 2004.

Analysis:
1. The stay petition pertains to the waiver of pre-deposit of Service Tax amounting to Rs. 1,36,177/- and penalty of Rs. 10,000/- under Rule 15(3) of the Cenvat Credit Rules, 2004.

2. The lower authority confirmed the demand for Service tax credit availed on various services, including repairs, gardening, painting, waste removal, earth leveling, and project work for a new sugar plant. On appeal, credit was granted on some items, while the dispute remained regarding gardening work at the colony and earth leveling work at quarters.

3. The Tribunal found the credit availed on gardening work to be debatable, while considering that the Service tax paid on charges for detailed project work for a new sugar plant may be available. The Tribunal directed the appellants to pre-deposit Rs. 10,000/- within two months and report compliance by a specified date.

4. Upon compliance, the pre-deposit of the balance disputed amount was waived, and recovery stayed until the appeal's disposal. Failure to comply with the order would lead to dismissal of the appeal. The decision was pronounced and dictated in open court by the Tribunal.

This detailed analysis of the judgment highlights the issues involved in the stay petition for the waiver of pre-deposit of Service Tax and penalty under the Cenvat Credit Rules, 2004. The Tribunal's decision provides clarity on the disputed items and the requirement for pre-deposit before the appeal's final resolution.