2013 (12) TMI 148 - AT - Service Tax

Stay application - CENVAT Credit - Group Insurance service - Held that - Prima facie, insurance of employees is an input service necessary for maintenance of work force which manufactures final product. Therefore, I grant waiver of pre-deposit of duty amount and there shall be stay on collection of dues arising from the impugned order during pendency of the appeal - Following decision of CCE, Bangalore v Stanzen Toyotetsu India (P) Ltd 2011 (4) TMI 201 - KARNATAKA HIGH COURT - Stay granted.

Summary

The Appellate Tribunal CESTAT NEW DELHI granted waiver of pre-deposit on service tax credit for insurance taken for employees by cement manufacturers. The Tribunal considered it as an input service necessary for maintaining the workforce and manufacturing the final product. Stay on collection of dues was ordered during the appeal process.