2009 (8) TMI 800 - AT - Service Tax

Waiver of pre-deposit - Cenvat credit - It is submission that the construction of Kisan Shade and Labour Hutment would not come within a definition of input service as it is welfare measure - It appears that construction of Kisan Shade and Labour Hutment are statutory duties under the law. Thus, prima facie the activities are related to business - pre-deposit of tax and penalty is waived till disposal of the appeal - Stay application is allowed

Summary

The Appellate Tribunal CESTAT, New Delhi, under the citation 2009 (8) TMI 800, heard an application for waiver of pre-deposit of duty and penalty totaling Rs. 4,06,394.00. The applicant argued that the denial of credit on input service for the construction of Kisan Shade and Labour Hutment was unjust, citing the U.P. Sugarcane (Regulation of Supply and Purchase) Rules, 1954, and the Factories Act. The Commissioner (Appeals) deemed the construction a welfare measure, not an input service. However, the Tribunal's Larger Bench had previously allowed input service credit for outdoor catering services in a manufacturer's canteen. After reviewing the case, the presiding judge concluded that the construction of Kisan Shade and Labour Hutment could be considered a statutory duty under the law and related to business activities. Therefore, the pre-deposit of tax and penalty was waived until the appeal's resolution. The stay application was granted.