2009 (7) TMI 816 - AT - Service Tax

Stay application refund - credit of the input stage are not used directly in the services exported - Revenue s dispute before us is non-eligibility, but there is no dispute of export of services - decision of this bench in the case of Deloittee Tax Services India Pvt. Ltd., (supra) will squarely cover issue no reason for staying the operation of the impugned order - Stay application - dismissed

Summary

Issues:
Stay application by Revenue for impugned order involving credit of input stage in exported services.

Analysis:
The judgment involves a stay application by the Revenue concerning the operation of an impugned order. The Revenue argued that the stay is necessary as the question of refund is at stake, emphasizing that the credit of the input stage is not directly used in the exported services. On the contrary, the respondent's Chartered Accountant contended that the issue has been settled by a previous bench in a specific case. The Tribunal carefully considered both sides' submissions and noted that the Commissioner (Appeals) had granted the respondent benefits for various services used in rendering the exported services. The Revenue disputed the eligibility, but there was no disagreement on the export of services. The Tribunal found that Rule 5 might apply in this situation, and the decision in a previous case was deemed applicable. Consequently, the Tribunal dismissed the application for staying the operation of the impugned order, as there was no valid reason to do so. The judgment was pronounced and dictated in open court.

This analysis provides a detailed overview of the issues involved in the judgment, including the arguments presented by both parties and the Tribunal's reasoning behind dismissing the stay application.