2013 (11) TMI 285 - AT - Central Excise

Eligibility for Cenvat credit Outdoor catering service Waiver of Pre-deposit Held that - The appellant would be eligible for cenvat credit in respect of these two services - Prima-facie view the appellant have made out a strong case in their favour - the requirement of pre-deposit of cenvat credit demand, interest and penalty waived for hearing of the appeal and recovery stayed till the disposal of the appeal - Stay granted.

Summary

Issues:
1. Eligibility for cenvat credit of outdoor catering service and tour operator service during January 2010 to June 2010 period.

Analysis:
The judgment revolves around the dispute concerning the appellant's eligibility for cenvat credit amounting to Rs.1,17,981/- for outdoor catering service and tour operator service utilized between January 2010 to June 2010. The Assistant Commissioner, through an order-in-original dated 25.5.2011, disallowed the cenvat credit, imposing duty along with interest and penalty. This decision was subsequently upheld by the Commissioner (Appeals), leading to the filing of the present appeal along with a stay application.

During the proceedings, it was acknowledged by both sides that the appellant, formerly known as M/s Suzuki Powertrain India Limited, had merged with M/s Maruti Suzuki India Limited as per the Delhi High Court's order dated 29.01.2013, effective from 01.04.2012. Notably, a previous case involving M/s Suzuki Powertrain India Limited had been adjudicated by the Tribunal in favor of cenvat credit eligibility for the same services in question. In light of this precedent, the presiding judge, Rakesh Kumar, opined that the appellant had presented a strong case in their favor. Consequently, the requirement for pre-deposit of the cenvat credit demand, interest, and penalty was waived for the appeal hearing, and the recovery thereof was stayed until the appeal's final disposal, with the stay application being allowed.