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Issues involved: Interpretation of whether Towers and Shelters can be treated as components and spare parts of capital goods for availing credit u/s Chapter 7308.20 and Chapter 9406.00.
Summary: The judgment by the Appellate Tribunal CESTAT, New Delhi involved a case where the applicants had taken credit for duty paid Towers and Shelters as components and spare parts of capital goods. The Commissioner, in the impugned order, disallowed the credit, leading to a demand confirmation of Rs. 2,06,34,594/- along with interest and a recovery order of Rs. 75,65,186/-. The applicants had initially taken the credit, then reversed it upon receiving a show cause notice, and later re-credited the amount. The Tribunal considered the stay order in the case of Bharati Tele Ventures Ltd., where a similar issue was discussed, and granted a waiver on pre-deposit of Service Tax, interest, and penalty, staying the recovery until the appeal's disposal. In the case, the Tribunal noted that a prima facie case had been made regarding the credit on Towers and parts of Towers, based on previous orders and differing views expressed by the Department on the availability of Service Tax credit for these items. The Tribunal, without expressing any views on the case's merit, observed that a similarly placed assessee had been granted a stay in a previous case, and therefore decided to waive the pre-deposit and stay the recovery of Service Tax, interest, and penalty until the appeal's final disposal.
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