2013 (8) TMI 24 - AT - Central Excise

Waiver of pre-deposit Stay applications - Issue involved in this case is regarding availment of cenvat credit of the service tax paid to the Clearing and Forwarding Agent service and the Commission Agents by way of reverse charge mechanism Held that - Commission has been paid to the Commission Agents and Clearing and Forwarding Agents for the services rendered by them for clearances and sale of the goods, manufactured by the appellant. Issue seems to be settled in favour of the assessee in view of the decisions in the cases MTR Foods Limited 2011 (1) TMI 143 - CESTAT, BANGALORE ; Godfrey Philips India Limited 2008 (12) TMI 90 - CESTAT, AHMEDABAD ; Mileen Engineers 2010 (8) TMI 200 - CESTAT, MUMBAI Waiver of pre-deposit allowed Decided in favor of Assessee.

Summary

Issues:
- Waiver of pre-deposit of confirmed duty, interest, and penalty under Rule 15(3) of Cenvat Credit Rules, 2004 for two appeal cases.

Analysis:
- The stay petitions were filed seeking the waiver of pre-deposit of amounts totaling Rs. 23,19,043 and Rs. 12,05,965 confirmed as duty, along with interest and penalty of Rs. 2000 each, under Rule 15(3) of Cenvat Credit Rules, 2004.
- The lower authorities confirmed the amounts due to the appellant availing cenvat credit of service tax paid by Clearing and Forwarding Agents and on commission to foreign agents for goods sales.
- The appellant argued that the commission paid to agents was for the sale of products manufactured in their factory premises, citing relevant legal decisions.
- The learned A.R. reiterated the findings of the adjudicating authority.
- Upon considering submissions and records, it was found that the issue revolved around the availment of cenvat credit for service tax paid to Clearing and Forwarding Agents and Commission Agents through reverse charge mechanism.
- The commission was paid for services rendered in clearances and sale of goods manufactured by the appellant, with legal decisions supporting the appellant's position.
- Consequently, the Tribunal allowed the applications for waiver of pre-deposit amounts and stayed the recovery pending the disposal of appeals.

This judgment showcases a case where the appellant sought relief from pre-deposit requirements for confirmed duty amounts, interest, and penalties under the Cenvat Credit Rules. The issue centered on the appellant's utilization of cenvat credit for service tax payments to agents, with a focus on commissions paid for services related to goods sales. Legal decisions were cited to support the appellant's argument, leading to the Tribunal ruling in favor of the appellant and granting the waiver of pre-deposit amounts, thereby staying the recovery process until the appeals were resolved.