2014 (8) TMI 883 - AT - Central Excise

Denial of cenvat credit - Rent-a-cab operator Service and Outdoor Catering Services - Held that - credit of Outdoor Catering (Canteen) Services is concerned, appellant has reversed a credit if ₹ 1,34,529 - In view of the order in the case of M/s Baroda Textile and 2014 (8) TMI 399 - CESTAT AHMEDABAD , appellant has made out a case for waiver of the remaining amounts. It is accordingly ordered that there will be a stay on the recoveries of the remaining amounts till the disposal of this appeal - Stay granted.

Summary

Issues:
1. Stay application for denial of cenvat credit on Rent-a-cab operator Service and Outdoor Catering Services.

Analysis:
The judgment pertains to a stay application filed to stay the operation of an order passed by the Commissioner (Appeals) upholding the decision of the adjudicating authority regarding the denial of cenvat credit on Rent-a-cab operator Service and Outdoor Catering Services. The appellant argued that cenvat credit on Rent-a-Cab Services was admissible before the amendment of Rule 2(l) of the cenvat credit Rules 2004. Additionally, the appellant reversed a credit of &8377; 1,34,529/- for Outdoor Catering (Canteen) Services. The Tribunal noted that similar stay orders had been passed by the Bench in other cases, and after considering the submissions and case records, a stay was granted on the recoveries of the remaining amounts till the disposal of the appeal. This decision was influenced by previous stay orders in similar cases, providing a basis for the appellant's request for waiver of the remaining amounts.

This judgment highlights the importance of legal arguments and precedents in stay applications concerning the denial of cenvat credit. The Tribunal considered the appellant's contentions regarding the admissibility of cenvat credit before the rule amendment and the reversal of credit for Outdoor Catering Services. The reference to previous stay orders in similar cases played a crucial role in granting the stay on the recoveries of the remaining amounts. The decision underscores the significance of legal reasoning and consistency in judicial decisions, especially in matters related to tax credits and financial liabilities.