2013 (12) TMI 1523 - AT - Service Tax

Summary

Issues involved: Application for waiver of pre-deposit of Cenvat credit and penalty under Section 11AC of the Central Excise Act, 1944.

Waiver of Pre-deposit of Cenvat credit:
The applicant sought waiver of pre-deposit of Cenvat credit of Rs. 1,04,040/- and penalty imposed under Section 11AC of the Central Excise Act, 1944. The advocate argued that the input service credit on valuation of fixed assets falls under business activities, making it eligible as per Rule 2(l) of Cenvat Credit Rules, 2004. It was highlighted that no notice was issued by the department for the subsequent period, indicating that Service Tax was not charged on the impugned activity. The Revenue did not contest the absence of any other show cause notice on the issue. The tribunal acknowledged that the valuation of fixed assets is indeed related to business activities, making it eligible for input service credit. Since no other show cause notice was issued for prospective periods, the tribunal concluded that the applicant had a valid case for full waiver of the pre-deposit, and accordingly, the Stay Petition was allowed.