2014 (1) TMI 358 - AT - Service Tax

Stay application - Reversal of CENVAT Credit - Security services - Held that - appellant has paid to the security provider the amount raised by them for the services rendered. The said invoices also indicate that the Service Tax charged by the service provider to the appellant. We find that the appellant cannot be faulted with for availing Cenvat credit of Service Tax paid for which he has already made the payment to the service provider. Non-payment of the Service Tax liability by the service provider to Government agency, prima facie, cannot be held against the appellant. Hence, we find that the appellant has made out a prima facie case for waiver of pre-deposit of the amounts involved. Accordingly, the application for waiver of pre-deposit of balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

The Appellate Tribunal CESTAT Ahmedabad ruled in favor of the appellant, allowing waiver of pre-deposit of balance amounts involved in the case related to reversal of Cenvat credit on Service Tax paid by security services. The appellant had already paid the amount raised by the security provider for the services rendered, including the Service Tax charged. The non-payment of Service Tax liability by the service provider to the Government agency was not held against the appellant. Recovery of the balance amounts involved was stayed until the appeal's disposal.