2010 (12) TMI 325 - AT - Service Tax

Waiver of pre-deposit - cenvat credit of service tax paid on sales promotion and market research services to be allowed as covered by the decision of HC in CCE, Nagpur v. Ultra Tech Cement Ltd. 2010 -TMI - 78203 - BOMBAY HIGH COURT - As regards storage and delivery of goods, since goods are in question are export goods, no service tax liability arises thereon - full waiver granted.

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of pre-deposit of Rs. 3,56,504/- for credit disallowed on Business Auxiliary Services. Credit was denied as services were not directly or indirectly used in relation to manufacturing final products. Tribunal allowed credit for sales promotion and market research based on a High Court decision. It waived pre-deposit for service tax on storage and delivery of export goods, stating no service tax liability arises on export goods. Recovery of tax, interest, and penalty was stayed during the appeal.