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2014 (1) TMI 1376 - AT - Service TaxDenial of cenvat credit Rent-a-cab Service Waiver of Pre-deposit - Cabs used by the employees as well as their family members for unofficial work - Held that - The trips made by the rent-a-cab service provider for unofficial work, prima facie, would not be eligible for availment of Cenvat credit under the provisions of Cenvat Credit Rules, 2004 - the entire issue needs to be gone into detail Thus, the appellant is directed to deposit an amount of Rupees one lakh as pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.
Issues:
Stay petitions for waiver of pre-deposit of duty and penalty amounts in two appeals concerning denial of Cenvat credit to the appellant. Analysis: The judgment pertains to two stay petitions filed for the waiver of pre-deposit of amounts in two appeals concerning the denial of Cenvat credit to the appellant. The appeals raised a common issue and were in respect of the same assessee, leading to their disposal by a common order. The lower authorities had denied Cenvat credit to the appellant on the service provided by a rent-a-cab service provider, citing unofficial use of the cabs by employees and their family members. Upon hearing both sides and examining the record, the judges found that trips made for unofficial work would not be eligible for Cenvat credit under the Cenvat Credit Rules, 2004. Recognizing the need for a detailed inquiry into the matter, the appellant was directed to deposit a specific amount within a stipulated period to facilitate the hearing and disposal of the appeals. The judges directed the appellant to deposit a sum of &8377; 1,00,000 within eight weeks and report compliance by a specified date. The Deputy Registrar was tasked with verifying compliance, and upon confirmation, the file would be placed before the Bench for further action. Subject to the appellant's compliance, the application for the waiver of pre-deposit of the remaining amounts was allowed, and the recovery thereof was stayed until the appeals were disposed of. The judgment was dictated and pronounced in court, outlining the conditions set for the appellant to proceed with the appeals.
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