2011 (5) TMI 543 - AT - Service Tax

Application for COD - 43 days delay - Waiver of pre-deposit - Demand has been confirmed on the ground that the assessees were not entitled to credit of Rent-a-Cab service which is not used in or in relation to manufacture or clearance of final products and do not have any nexus with the manufacture of final products - Held that - Since the cabs have been rented by the assessees for the purpose of bringing their employees from their residence to the factory, where the manufacturing activities take place and is in direct relation to the activity of business of manufacture of the assessees - Therefore, waive pre-deposit of the amounts in question and stay recovery thereof pending the appeal.

Summary

The Appellate Tribunal CESTAT, Chennai allowed the COD application for a 43-day delay in preferring the appeal. The application for waiver of pre-deposit of service tax and penalty was granted based on the direct relation of 'Rent-a-Cab' service to the manufacturing activities of the assessees, following relevant court decisions. Recovery of the amounts in question was stayed pending the appeal.