2014 (2) TMI 335 - AT - Service Tax

Cenvat credit on various services Invoices raised in the name of head office or other units Waiver of Pre-deposit Held that - Few invoices are in the name of various other units and not in the name of head office of the appellant in Mumbai - since there is no bifurcation available - the appellant has not made out a prima facie case for complete waiver of the amount - the appellant is directed to deposit an amount of Rupees Fifty Thousands as pre-deposit upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of duty, interest, and penalty due to denial of CENVAT Credit on service tax paid on invoices raised in the name of head office or other units.

Analysis:
The appellant filed a Stay Petition seeking a waiver of pre-deposit of duty, interest, and penalty amounting to Rs.5,26,077/-, which were confirmed by lower authorities due to the appellant availing CENVAT Credit on service tax paid on invoices not in their name. Despite the absence of the appellant, the Tribunal proceeded with the case due to its narrow compass. The issue revolved around the denial of CENVAT Credit on service tax paid on invoices issued in the name of the appellant's head office or other units. The Tribunal noted the appellant's arguments on limitation and the lack of service tax distributor registration for the head office. While acknowledging previous decisions on similar matters, the Tribunal found insufficient evidence for a complete waiver of the amounts. Consequently, the Tribunal directed the appellant to deposit Rs.50,000 within eight weeks and report compliance, allowing the waiver of pre-deposit for the remaining balance subject to compliance and staying recovery until appeal disposal. The decision was pronounced in court, emphasizing the importance of compliance for further orders.