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2012 (2) TMI 310 - AT - Service TaxCenvat credit in respect of service tax paid on courier services and telephone services Held that - In view of decision in case of CCE vs Apar Industries Ltd (2010 - TMI - 203341 - CESTAT, Ahmedabad), Keltech Energies Ltd Vs CCE (2008 - TMI - 4051 - CESTAT Bangalore), balance of convenience lies in favour of appellants justifying full waiver of dues arising from the impugned order for admission of the appeal. There shall be stay on collection of dues arising from the impugned order during pendency of the appeal Decided in favor of assessee.
Issues involved:
Whether cenvat credit can be allowed for service tax paid on courier and telephone services. Analysis: The issue in this case revolves around the eligibility of cenvat credit for service tax paid on courier and telephone services. The Revenue contended that such credit should not be allowed, leading to an appeal after the Commissioner (Appeals) reversed the initial decision of the Adjudicating Authority to allow the credit. The appellant cited precedents like Kaltech Energies Ltd Vs CCE and CCE Vs Apar Industries Ltd before the Commissioner (Appeals) to support their claim, but the Commissioner did not provide clear reasons for distinguishing this case from the cited precedents. The learned AR for Revenue relied on the decision of the Hon'ble Supreme Court in Maruti Suzuki Ltd Vs Commissioner, along with cases like CCE Vs. Sundaram Brake Linings and GSN Sinter Metals Ltd to emphasize the necessity of establishing a clear nexus between input services and final products. However, the Tribunal noted that the Maruti Suzuki Ltd case pertained to inputs, not input services, and the other cases were specific to outdoor catering services and maintenance of gardens, respectively. Considering the laws cited by the appellants, the Tribunal found in favor of the appellants, justifying a full waiver of dues from the impugned order for the admission of the appeal. Consequently, a stay was ordered on the collection of dues during the appeal's pendency.
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