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Issues involved: Stay petition for waiver of pre-deposit of demanded amount disallowing credit on "input services" u/s 1,05,193/- along with interest and penalty.
Summary: Issue 1: Disallowance of credit on "Catering Services" and "Staff Bus Transport Services" as not "input services" The appellant sought waiver of pre-deposit of demanded amount disallowing credit on "input services" u/s 1,05,193/- along with interest and penalty. The credit for "Catering Services" and "Staff Bus Transport Services" was disallowed, leading to a total disallowance of &8377; 1,05,193/-. The appellant argued that the services should be considered as "input services" based on the number of workers employed. The Tribunal noted that the services may not deserve to be called "input services" as the appellant was not required to maintain a canteen under the Factories Act. However, citing a decision of the High Court, it held that the service tax paid on "Staff Bus Transport Services" shall be eligible for credit. Issue 2: Direction for deposit and stay of recovery The Tribunal directed the appellant to deposit a sum of &8377; 20,000/- within 6 weeks and report compliance to the Assistant Registrar. The Assistant Registrar was instructed to report to the bench, and subject to the deposit of the said amount, there would be a waiver of pre-deposit of the balance of dues as per the impugned order and a stay of recovery thereof till the disposal of the appeal. The order was pronounced and dictated in open court. This judgment highlights the importance of determining the eligibility of services as "input services" for claiming credit under the relevant provisions, and the procedural aspects related to pre-deposit and stay of recovery pending appeal.
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