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2014 (2) TMI 809 - AT - Service TaxDenial of CENVAT credit on input services - Nexus between the output service and each of the services claimed to be input services - Whether the appellant could have claimed CENVAT credit - Held that - Assessee in its previous case has accepted the previous order of pre deposit - Therefore, following decision of assessee s own case in 2013 (4) TMI 146 - CESTAT, Bangalore - Conditional stay granted.
Issues:
Claiming CENVAT credit on input services for the period from April 2009 to March 2010. Analysis: The appellant sought waiver and stay regarding the denial of CENVAT credit on input services totaling Rs. 4,24,80,609/- along with associated penalties. The main issue was whether the appellant was eligible to claim CENVAT credit on various input services like Architects services, Banking Service, Business Support Service, Chartered Accountant's Services, Commercial or Industrial Construction services, Design Service, Insurance, Management Consultant, and Real Estate Agent's services. These services were claimed to be input services under Rule 2(l) of the CENVAT Credit Rules 2004 in relation to the output service of renting immovable property. The Tribunal noted that all the aforementioned input services were previously subject to a similar issue in the appellant's earlier case, which was covered by a Stay Order passed by the Bench. In that case, the appellant was directed to predeposit a substantial amount towards a similar demand. Considering the precedent set in the earlier case, the Tribunal ruled that the appellant should comply with the directive and predeposit an amount of Rs. 50,00,000/- within six weeks to honor the cited precedent. Upon compliance, there would be a waiver of predeposit and stay of recovery concerning the penalties imposed, the balance amount of service tax, education cesses, and interest thereon. In conclusion, the Tribunal ordered the appellant to predeposit a specified amount within a stipulated timeframe based on the precedent set in a previous case, thereby allowing for a waiver of predeposit and stay of recovery for the penalties and outstanding amounts subject to compliance.
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