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2014 (8) TMI 575 - AT - Central ExciseWaiver of pre-deposit of the service tax - Denial of CENVAT Credit - Availment of credit at job worker s premises - Held that - applicant has not received the services although at the premises of the jobworker. The invoices are also in the name of the applicant even though the address mentioned is of the jobworker. When the service tax has been paid by the applicant for the services received by them therefore, prima facie the applicant is entitled to take CENVAT Credit. Hence, the applicant has made out a case for 100% waiver of pre-deposit. - Stay granted.
Issues:
Waiver of pre-deposit of service tax demanded due to invoices not in the name of the applicant. Analysis: The case involved the applicant, a principal manufacturer of heavy engineering equipments, seeking waiver of pre-deposit of service tax demanded as the invoices were not in their name but in the name of the jobworker. The Revenue contended that services availed by the applicant at the jobworker's premises did not entitle them to CENVAT Credit. However, it was established that the applicant had paid service tax for the services received, even though at the jobworker's premises. The invoices, though in the jobworker's name, were for services received by the applicant, justifying their entitlement to CENVAT Credit. The Tribunal, after hearing both sides and considering the submissions, concluded that the applicant had a prima facie case for 100% waiver of pre-deposit. Consequently, the Tribunal granted waiver of the entire amount of duty, interest, and penalty, and stayed the recovery during the appeal's pendency. In summary, the judgment addressed the issue of waiver of pre-deposit of service tax demanded from the applicant due to invoices not being in their name. The Tribunal found that despite the invoices being in the jobworker's name, the services were received by the applicant, who had paid the service tax. As a result, the applicant was deemed entitled to CENVAT Credit, justifying the grant of 100% waiver of pre-deposit. The Tribunal's decision to waive the entire amount of duty, interest, and penalty, and to stay recovery during the appeal, was based on the applicant's fulfillment of the criteria for entitlement to CENVAT Credit despite the discrepancy in the invoices.
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