2013 (11) TMI 1075 - AT - Central Excise

Admissibility of cenvat credit on the outdoor catering services - Waiver of Pre-deposit Held that - The issue is disputed one and requires in depth study Assessee had already deposited Rs.2,01,040 Thus, the amount already submitted is considered to be sufficient deposit for the purpose of granting stay and hearing the appeal - The application for stay of recovery of balance amount is therefore granted till the final disposal of the appeal Stay granted.

Summary

Issues involved: Admissibility of cenvat credit on outdoor catering services for the period 2008-09 to January 2011.

Analysis:

The appeal was filed against OIA No. SRP/202/VAPI/2012-13 passed by the Commissioner (Appeals), Vapi. The main issue in this case revolved around the admissibility of cenvat credit on outdoor catering services for the specified period. The first appellate authority, in its order dated 09.01.13, upheld the original adjudicating authority's decision disallowing the cenvat credit and imposing a penalty under Section 11AC of the Central Excise Act, 1944. The appellant cited the decision of the Hon'ble High Court of Bombay in the case of CCE Nagpur Vs. Ultratech Cement Ltd. 2010 (20) STR 577 (Bom.) to support their argument that the cost recovered from the employee/consumer is subject to service tax. Consequently, the appellant had calculated and paid an amount of Rs.2,01,040/-.

During the hearing, the learned A.R. contended that the appellant failed to provide relevant calculation details, which could impact the admissibility of the cenvat credit. Given the disputed nature of the issue and the need for a comprehensive examination, the deposit of Rs.2,01,040/- already made by the appellant was deemed sufficient for granting a stay on the recovery of the balance amount until the final disposal of the appeal. This decision was pronounced in the court by Mr. H.K. Thakur, J., who presided over the case.