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2012 (12) TMI 1039 - AT - Central ExciseCenvat Credit - construction services - Waiver of pre-deposit and penalty - Held that - setting up modernization renovation or repairs of a factory premises was covered under input service at the material time - the applicants are able to make out a prima facie case for total waiver of pre-deposit. Therefore the pre-deposit of dues adjudged is waived and recovery thereof is stayed during the pendency of the appeal - petition allowed.
Issues:
Waiver of pre-deposit of Cenvat Credit and penalty under Section 11AC of the Central Excise Act, 1944. Analysis: The applicant sought a waiver of pre-deposit of Cenvat Credit amounting to Rs. 8,06,719 and an equal penalty under Section 11AC of the Central Excise Act, 1944. The applicant contended that the department had denied them Cenvat Credit on service tax paid for construction services. It was argued that during the period from December 2009 to July 2010, their service fell within the definition of input service, specifically related to setting up, repairs, and maintenance of a factory. The learned Assistant Commissioner reiterated the findings of the Commissioner (Appeal). Undisputedly, the relevant period in question was from December 2009 to July 2010. The definition of input service during that time included services related to setting up, modernization, renovation, or repairs of a factory premises. Considering this, the Tribunal found that the applicants had established a prima facie case for a total waiver of pre-deposit. Consequently, the pre-deposit of dues was waived, and the recovery thereof was stayed during the pendency of the appeal. The stay petition was allowed by the Tribunal. In conclusion, the Tribunal granted the waiver of pre-deposit of Cenvat Credit and penalty under Section 11AC of the Central Excise Act, 1944, based on the applicant's argument that their services qualified as input services during the relevant period. The Tribunal found merit in the applicant's case and stayed the recovery of dues pending the appeal process.
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