2014 (12) TMI 421 - AT - Service Tax

Waiver of pre deposit - Cenvat credit - admissibility of credit on inputs/capital goods, namely structures of iron and steel towers and pre-fabricated buildings etc. - Held that - As regards the impugned Cenvat Credit of ₹ 1,13,90,700/- relating to input services the appellants have referred to several judgments mentioned above in their support where full waiver has been granted even in respect of this issue. Appellants have categorically stated that the situation of the type referred to by the Ld. AR does not exist in their case. Appellants have not sought waiver of pre-deposit of credit of ₹ 4,99,997/- denied for being availed of without proper documents - partial stay granted.

Summary

Issues:
1. Denial of Cenvat credit amounting to Rs. 5,56,16,995/- along with interest and penalty.
2. Disallowance of credits on input/capital goods and input services.
3. Applicability of full waiver in similar cases.
4. Objection regarding availing credit on input services.
5. Denial of credit for lack of proper documents.

Analysis:
1. The appellants filed a stay application along with an appeal against an Order-in-Original denying Cenvat credit amounting to Rs. 5,56,16,995/-. The denial was based on alleged mis-statement/suppression of facts, leading to the recovery of the amount along with interest and penalty.

2. The appellants were issued four Show Cause Notices disallowing credits on input/capital goods and input services. Various cases were cited where full waiver was granted in similar situations. The appellants argued that they were entitled to the credit based on precedents and that the issue of admissibility was addressed in previous judgments.

3. The Ld. AR raised concerns about service providers availing schemes with lower service tax rates, which might restrict credit on input services. However, the appellants argued that such restrictions did not apply in their case, emphasizing that service providers did not benefit from any such schemes.

4. After considering both parties' submissions, it was observed that the appellants were granted full waiver in similar cases for the disputed credit amounts. The Ld. AR acknowledged this point, and the appellants clarified that the situation mentioned by the Ld. AR did not apply to them.

5. The appellants did not seek a waiver for the credit denied due to improper documentation amounting to Rs. 4,99,997/-. The Tribunal granted a waiver of pre-deposit for the demanded Cenvat Credit amount, interest, and penalties, subject to a partial pre-deposit within a specified timeframe. Recovery of the remaining amount was stayed pending appeal.

This detailed analysis covers the issues of denial of Cenvat credit, disallowance of credits, applicability of waivers, objections raised, and denial of credit due to documentation issues as addressed in the judgment by the Appellate Tribunal CESTAT NEW DELHI.