2014 (3) TMI 599 - AT - Central Excise

Waiver of pre deposit - Denial of CENVAT Credit - input service - custom clearance service - four services availed by the appellant i.e. construction service, tour operator service, custom clearance service and photocopier service. - Held that - there are many decisions in respect of construction services, tour operator services and photocopier services laying down that the same are used in relation to the business. As regards the custom clearance service the contention of the ld. SDR is that the said service is post export and as such cannot be held to be in relation to the business. - the custom clearance service is an arguable and contentious topic - stay granted partly.

Summary

Issues: Cenvat credit denial for services - Construction, Tour Operator, Custom Clearance, Photocopier.

In the judgment, the Appellate Tribunal CESTAT NEW DELHI considered the denial of Cenvat credit amounting to Rs.50,32,599/- to the applicant, along with an imposed penalty of the same amount, for four services: construction service, tour operator service, custom clearance service, and photocopier service. The Tribunal noted that there were previous decisions supporting the eligibility of construction services, tour operator services, and photocopier services as being used in relation to the business. However, a dispute arose regarding custom clearance service, with the respondent arguing that it is post-export and not related to the business, while the appellant contended that it is connected to exports and falls under the broad definition of input services. The Tribunal acknowledged the contentious nature of the custom clearance service issue and directed the applicant to deposit an additional amount of Rs. 3.00 lakhs within six weeks, considering the earlier deposit of Rs.3,70,800/-. Upon compliance with the deposit, the pre-deposit of the remaining duty balance and the penalty would be waived, and the recovery stayed during the appeal process. The matter was scheduled for compliance verification on a specified date, and all stay petitions were disposed of accordingly. The judgment was delivered by Smt. Archana Wadhwa and Shri Sahab Singh, JJ.