2009 (10) TMI 889 - AT - Central Excise

Summary

Issues involved: Stay petition against waiver of pre-deposit of Service Tax, Interest, and Penalty.

Service Tax Demand: The appellant sought waiver of pre-deposit for the Service Tax amount, interest, and penalty imposed. The Chartered Accountant argued that the demand for reversal of Cenvat credit utilized was based on exceeding 20% of input stage credit, but maintained that they did not exceed the limit for the entire financial year. Reference was made to a Co-ordinate Bench's findings in the appellant's own case on the same issue.

Eligibility for Credit: The key issue was whether the appellant could avail 20% of the credit on input stage credit for the entire year or if it should be restricted to monthly availment and utilization. The Tribunal noted that in the appellant's own case, the appeal was allowed on this ground, indicating a prima facie case for the waiver of pre-deposit. The Tribunal granted the waiver and stayed recovery of the adjudged dues until the appeal's final disposal.

This judgment by the Appellate Tribunal CESTAT Bangalore addressed the stay petition regarding the waiver of pre-deposit for Service Tax, Interest, and Penalty. The Tribunal considered the appellant's argument regarding the reversal of Cenvat credit utilization and the issue of eligibility for credit, ultimately granting the waiver based on the appellant's prima facie case and previous findings in their own case.