2014 (2) TMI 289 - AT - Service Tax

Waiver of pre-deposit of service tax - Availment of CENVAT Credit - Service tax paid on courier charges and on the legal and provisional charges - Held that - services also include processing of printing of list for EGM etc. - The cenvat credit of the service tax paid by the service provider is an arguable one which can be considered only at the time of final disposal of appeal. Accordingly, we find that the appellant should be put to some condition to hear and dispose the appeal - Conditional stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of service tax amount, eligibility of cenvat credit on courier charges, eligibility of cenvat credit on legal professional charges.

The judgment in the case involved a stay petition for the waiver of pre-deposit of a service tax amount, interest, and penalty. The amounts in question were confirmed as ineligible cenvat credit availed by the appellant on service tax paid on courier charges and legal and provisional charges from the service provider. The Tribunal noted that the issue of credit on courier charges had been decided in favor of the assessee by the Hon'ble High Court of Gujarat in a related case. However, regarding the credit on legal professional charges, the Tribunal found that these services included additional aspects like processing of printing of lists for EGM, requiring further detailed examination at the final disposal stage. The Tribunal directed the appellant to deposit a specific amount within a set timeline and report compliance, with the application for waiver of pre-deposit of the remaining balance allowed subject to compliance, and recovery stayed until the appeal's disposal. The decision highlighted the need for detailed consideration of the legal professional charges issue at the final disposal stage, indicating the arguable nature of the cenvat credit in that context.

The judgment emphasized the importance of complying with the specified deposit requirements and reporting such compliance promptly to the Deputy Registrar for further action by the bench. The Tribunal's decision to allow the waiver of pre-deposit for the balance amounts involved was contingent upon the appellant meeting the directed deposit conditions and complying with the reporting timeline. By setting these conditions, the Tribunal ensured a structured process for addressing the appellant's request for waiver while maintaining the stay on recovery until the appeal's final disposal. The judgment underscored the procedural steps and timelines for compliance to facilitate the orderly progression of the case and the resolution of the issues related to the eligibility of cenvat credit on the disputed charges.

In conclusion, the judgment by the Appellate Tribunal CESTAT AHMEDABAD addressed the stay petition for the waiver of pre-deposit of a service tax amount, interest, and penalty, focusing on the eligibility of cenvat credit on courier charges and legal professional charges. The Tribunal's decision reflected a balanced approach, considering the legal precedents and the specific details of the services involved to determine the appropriate course of action. By directing the appellant to make a specified deposit and report compliance within a set timeline, the Tribunal ensured a structured process for addressing the issues at hand and provided clarity on the conditions for the waiver of pre-deposit and the stay on recovery pending the appeal's final disposal.