2011 (4) TMI 818 - AT - Service Tax

Waiver of predeposit - Input service tax credit - Outdoor catering service - Held that - Prima facie case has been made out by the assessees in the light of the decision of in CCE Nagpur Vs Ultratech Cement Ltd. 2010 (10) TMI 13 - BOMBAY HIGH COURT Security service for withdrawal of cash from bank premises and rent-a-cab service - Held that - Prima facie, have a nexus with the activity of the business of the assessees as the security service was engaged for withdrawing cash from the bank and rent-a-cab service was rendered to the assessees for bringing employees to and from the residence to the factory. Manpower supply agency services towards gardening, cleaning of kitchen, canteen, dining, toilet etc.- Held that - Assessee have not made out a prima facie case for waiver - predeposit of a sum of Rs.15,000/- within four weeks from today - Decided against the assessee.

Summary

Issues: Waiver of predeposit of service tax and penalty on input services including outdoor catering, security service, rent-a-cab service, and manpower supply agency services.

The judgment by the Appellate Tribunal CESTAT, CHENNAI, involved the issue of waiver of predeposit of service tax and penalty amounting to Rs.95,428/- and Rs.2,000/- respectively. The demand was confirmed due to the disallowance of input service tax credit on various services, namely outdoor catering service, security service for cash withdrawal, rent-a-cab service, and manpower supply agency services for specific activities. The Tribunal noted that a prima facie case was established by the assessees for the outdoor catering service based on the decision of the Hon'ble Bombay High Court in CCE Nagpur Vs Ultratech Cement Ltd. However, for the security service and rent-a-cab service, a nexus with the business activity of the assessees was recognized, as the security service was utilized for cash withdrawal and the rent-a-cab service was for employee transportation. On the other hand, for the manpower supply agency services related to gardening, cleaning, etc., the assessees failed to establish a prima facie case for waiver. The Tribunal directed a predeposit of Rs.15,000/- within four weeks, with the balance duty and penalty waived upon this deposit, and recovery stayed pending the appeal. Non-compliance would lead to the vacation of stay and dismissal of the appeal without prior notice. Compliance reporting was set for a specific date, emphasizing the importance of adhering to the Tribunal's directions.

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