2014 (12) TMI 875 - AT - Service Tax

Waiver of pre-deposit of service tax, interest and penalty - Input service credit on the medical insurance paid for the employees - for the period prior to 1.4.2011 input service credit on insurance premium paid for employees is admissible for input service. Therefore, the applicant has made out a case for complete waiver of pre-deposit. Accordingly, we waive the requirement of entire amount of service tax, interest and penalties and stay recovery thereof during the pendency of the appeals. - Following decision of KPMG Vs. Commissioner of Central Excise, New Delhi reported in 2013 (4) TMI 493 - CESTAT NEW DELHI - Stay granted.

Summary

The Appellate Tribunal CESTAT Mumbai allowed the condonation of delay in filing appeals due to satisfactory reasons. The applicant sought waiver of pre-deposit of service tax, interest, and penalty for denying input service credit on medical insurance paid for employees from April 2004 to March 2011. Referring to a previous case, the Tribunal held that input service credit on insurance premium for employees is admissible before April 1, 2011. Therefore, the Tribunal waived the requirement of the entire amount of service tax, interest, and penalties and stayed recovery during the appeal's pendency.