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2007 (11) TMI 597 - AT - Service TaxPre-deposit - CENVAT credit - Held that - the issue is contentious. The appellants should pre-deposit Rs. one lakh within a period of one month and report compliance on 7th January 2008.
Issues:
1. Claim of Cenvat credit for outward transportation. 2. Claim of Cenvat credit for medi-claim policy, security and depot vehicle insurance, car rental, and pest control. Analysis: Issue 1: Claim of Cenvat credit for outward transportation In the first case, the appellants sought the benefit of Cenvat credit for outward transportation, which was rejected, leading to the confirmation of service tax. The appellant's counsel referenced a similar case pending before a larger bench for final hearing. Considering the matter's referral to a larger bench, the stay application was allowed, granting waiver and staying the recovery of the pre-deposit amount of &8377; 81,525. The registry was directed to link this case with related matters scheduled for final hearing on 26-3-08. Issue 2: Claim of Cenvat credit for various categories In the second case, the appellants claimed Cenvat credit for medi-claim policy, security and depot vehicle insurance, car rental, and pest control. However, the revenue authorities did not grant Cenvat credit for these items, citing that they did not fall under the definition of output services. The counsel argued that these were cenvatable categories, emphasizing the recurring nature of the expenses and requesting a waiver for the pre-deposit amount of &8377; 2,67,000. After hearing both parties, the tribunal found the issue to be contentious. It directed the appellants to pre-deposit Rs. one lakh within a month and report compliance by 7th January 2008. The matter was scheduled for further hearing on 26th March 2008. This detailed analysis of the judgment highlights the specific issues raised by the appellants regarding Cenvat credit claims for different services and the tribunal's decisions in each case, providing a comprehensive understanding of the legal proceedings and outcomes.
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