2010 (8) TMI 262 - AT - Service Tax

Waiver of pre-deposit cenvat credit of service tax - Cenvat credit wrongly taken and utilized by the assesses assessee entitled to benefit of exemption from payment of service tax in terms of Notification No. 6/2005-S.T - as aggregate value of taxable service did not exceed Rs. 8 lakhs in the Financial year 2007-08 has not been rebutted and - benefit claimed by the assessees has been denied on the ground that notification provided an option to the assessees and by registration and payment of service tax they had exercised the option to pay tax and not availed the benefit of exemption and could not go back on it during the remaining part of the financial year waiver of pre-deposit of tax

Summary

The Appellate Tribunal CESTAT, Chennai granted waiver of pre-deposit of Rs. 25,848/- for Cenvat credit wrongly taken by the assessees under Rule 14 of Cenvat Credit Rules, 2004. The waiver was based on the assessees' strong prima facie case for exemption from service tax under Notification No. 6/2005-S.T. The recovery of tax, interest, and penalty was stayed pending appeal.