2011 (2) TMI 231 - HC - Service Tax

Waiver of pre-deposit - CENVAT Credit on inputs - Telecommunication Service - Petition plea for waiver of demand on account of wrongful availment of Service Tax Credit and CENVAT Credit - In a similar matter Ahmedabad Bench of the Tribunal in its order in IDEA Cellular Ltd. v. CCE 2009 (4) TMI 777 - CESTAT AHMEDABAD granted complete waiver following identical order of the Bombay Bench referred to therein - Hence grant of complete waiver to the petitioner for the purpose of hearing of its appeal.

Summary

Issues:
Quashing of order of the Customs Excise and Service Tax Appellate Tribunal for waiver of demand on account of wrongful availment of Service Tax Credit and CENVAT Credit.

Analysis:

The petitioner filed a petition seeking to quash the order of the Customs Excise and Service Tax Appellate Tribunal, which had rejected the plea for waiver of demand due to the wrongful availment of Service Tax Credit and CENVAT Credit under the CENVAT Credit Rules, 2004. The petitioner's services were taxable under the heading 'Telecommunication Service' as per the provisions of the Finance Act, 1994. They claimed CENVAT Credit on inputs purchased for constructing towers for providing telecommunication services, but this claim was declined. The petitioner argued that they were justified in claiming the credit and that there was no basis for reversal. They cited a similar case where complete waiver was granted by the Ahmedabad Bench of the Tribunal, following an order from the Bombay Bench. The respondents did not dispute the decisions of the Bombay and Ahmedabad Benches, where complete waiver was granted in similar circumstances.

The High Court, without expressing any opinion on the merits of the case, directed the grant of complete waiver to the petitioner for the purpose of hearing their appeal. The petition was disposed of based on the above considerations.