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2013 (11) TMI 1172 - AT - Central ExciseCENVAT Credit on various input services - Scope of Input Service under Rule 2(l) of the CENVAT Credit Rules, 2004 - Waiver of pre-deposit - Penalty under Rule 15(2) of CENVAT Credit Rules, 2004 r.w Section 11AC of Central Excise Act, 1944 Held that - Following Lakshmi Automatic Loom Works Ltd. vs. CCE, Coimbatore 2011 (5) TMI 755 - CESTAT, CHENNAI - Availability of CENVAT Credit on setting-up/modernization of office premises, non-mentioning of registration number on the input invoices - the Applicant could not able to make out a prima facie case for total waiver of the pre-deposit of the CENVAT Credit availed on club membership - the Applicant directed to make a pre-deposit of Rupees fifty thousand upon such submission rest of the duty to be waived till the disposal Partial stay granted.
Issues: Application for waiver of pre-deposit of CENVAT Credit and penalty under Rule 15(2) of CENVAT Credit Rules, 2004.
Analysis: 1. The applicant sought waiver of pre-deposit of CENVAT Credit and penalty amounting to Rs.2,35,112/- imposed under Rule 15(2) of CENVAT Credit Rules, 2004 and Section 11AC of Central Excise Act, 1944. The applicant availed CENVAT Credit on various input services which were denied by the Department. The Chartered Accountant representing the applicant argued that certain credits were admissible based on precedents set by the Tribunal in similar cases. Specifically, credits related to setting-up/modernization of office premises, non-mentioning of registration number on input invoices, installation of air-conditioner, and club membership were discussed. 2. The Chartered Accountant cited relevant judgments to support the admissibility of the credits claimed by the applicant. These included the case of Suzuki Motorcycle (I) Pvt. Ltd. vs. CCE, Delhi-III, Gurgaon and Lakshmi Automatic Loom Works Ltd. vs. CCE, Coimbatore. The Chartered Accountant made a fair offer to make a pre-deposit of Rs.50,000/- in light of the arguments presented. 3. The Advocate representing the Revenue reiterated the findings of the Commissioner (Appeals) without presenting any contrary judgment. After hearing both sides and examining the records, the Tribunal noted that precedents allowed waiver of pre-deposit on similar issues such as CENVAT Credit on setting-up/modernization of office premises and non-mentioning of registration number on input invoices. However, the Tribunal found that the applicant failed to establish a prima facie case for total waiver of the pre-deposit regarding the CENVAT Credit availed on club membership. 4. Consequently, the Tribunal directed the applicant to make a pre-deposit of Rs.50,000/- within 8 weeks and report compliance by a specified date. Upon compliance, the remaining dues would be waived, and the recovery stayed during the pendency of the Appeal. The decision was dictated and pronounced in an open court session.
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