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2007 (5) TMI 626 - AT - Service TaxWaiver of pre-deposit - credit on Towers and parts of Towers and pre-fabricated shelter for protecting Transmission devices - Held that - While holding that a prima facie case for waiver has been made out in respect of the credit denial on Towers and parts thereof and pre-fabricated buildings, we accept the offer made of pre-deposit of ₹ 10 lakhs - Compliance is to be reported on 11.7.07.
Issues: Application for waiver of pre-deposit of Service Tax credit and penalty for Towers, parts of Towers, pre-fabricated buildings, Printers, and Office chairs.
Analysis: 1. The judgment revolves around the application for waiver of pre-deposit of Service Tax credit and penalty amounting to &8377; 2,04,39,093. The dispute arises from the classification of Towers, parts of Towers, pre-fabricated buildings, Printers, and Office chairs as capital goods for providing output service - Cellular Telephone service. 2. The Tribunal acknowledged that a prima facie case exists concerning the credit on Towers, parts of Towers, and pre-fabricated shelters based on the Commissioner of Central Excise, Mumbai's order. The Department itself had conflicting views on the availability of Service Tax credit on these items, with a significant credit amount of about &8377; 1.88 crores. In contrast, regarding Printers and Office chairs, the applicant's counsel proposed a deposit of &8377; 10 lakhs. 3. The Tribunal found merit in the waiver application concerning the credit denial on Towers, parts thereof, and pre-fabricated buildings, accepting the offer of pre-deposit of &8377; 10 lakhs. The directive mandated the deposit within eight weeks, failing which the stay on recovery would be lifted, resulting in the dismissal of the appeal without further notice. 4. The compliance deadline for the deposit was set for 11.7.07, emphasizing the importance of adhering to the Tribunal's directives to maintain the stay on recovery pending the appeal process. The judgment highlights the significance of timely compliance to avoid adverse consequences in the legal proceedings.
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