2014 (6) TMI 458 - AT - Service Tax

Service tax liability - Management, Maintenance and Repair services - Held that - appellant has been making available excess plant capacity available with them for manufacturing of insecticides to one M/s. Gharda Chemicals Limited which is done under the provisions of Rule 4(5) of Cenvat Credit Rules, 2004, i.e. Job Work. In our considered view, the service tax liability on the appellant under the category of Management, Maintenance and Repair, prima facie, may not arise, as it is on record that the plant capacity which has been made available to M/s. Gharda Chemicals was their own plant and which they were not using. Accordingly, we find that the appellant has made out a prima facie case for complete waiver of pre-deposit of amounts involved - Stay granted.

Summary

The Appellate Tribunal CESTAT Ahmedabad allowed the stay petition for waiver of pre-deposit of service tax amounting to Rs. 3,02,70,647/- and penalties under the Finance Act, 1994. The issue was regarding service tax liability on the appellant for Management, Maintenance, and Repair services, but it was found that the appellant had made out a prima facie case for complete waiver of pre-deposit. Recovery of amounts stayed pending appeal disposal.