2010 (12) TMI 699 - AT - Service Tax

waiver of pre-deposit - ineligible cenvat credit of the input services paid on rent-a-cab services - Held that rent-a-cab services utilized by the appellants for transportation of food articles from centralized canteen to appellant s current factory premises needs to be gone into in detail, which can be done only at the time of final disposal of the appeal - stay granted partly.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of an amount
2. Eligibility of cenvat credit on 'rent-a-cab' services
3. Interpretation of the definition of input services under Cenvat Credit Rules
4. Utilization of 'rent-a-cab' services for transportation of personnel and food articles
5. Pre-deposit amount and conditions for hearing and disposal of the appeal

Analysis:
The appellant filed a stay petition seeking waiver of pre-deposit of an amount along with interest and penalty imposed by the Adjudicating Authority and upheld by the Commissioner (A). The demand arose due to the alleged availing of ineligible cenvat credit on input services, specifically 'rent-a-cab' services used for transporting personnel. The authorized representative of the appellant argued that previous decisions of the bench supported their claim for cenvat credit on such services. On the contrary, the departmental representative contended that the interpretation of input services as per Cenvat Credit Rules needed clarification and highlighted the lack of evidence regarding the inclusion of expenses related to 'rent-a-cab' services in the CAS-4. Additionally, it was mentioned that these services were also used for transporting food articles from a centralized canteen to the factory premises.

Upon considering the submissions and perusing the records, the bench noted its consistent view that cenvat credit on tax paid for 'rent-a-cab' services should not be denied, citing previous decisions supporting the appellant's eligibility for such credit. However, the specific utilization of 'rent-a-cab' services for transporting food articles required further examination at the time of final appeal disposal. The appellant was directed to pre-deposit a specific amount within a stipulated timeline and report compliance, after which the application for waiver of the remaining balance was allowed, and recovery stayed until the appeal's final disposal. This decision aimed to ensure a fair hearing and resolution of the matter in question.

In conclusion, the judgment addressed the issues of pre-deposit waiver, cenvat credit eligibility, interpretation of input services, specific utilization of services, and conditions for appeal hearing and disposal, providing a balanced approach to resolving the dispute effectively and fairly.