2015 (2) TMI 98 - AT - Service Tax

Demand of inadmissible CENVAT Credit - Revenue contends that raw materials sent to job worker making finishing goods for the use of the appellant in commercial construction services shall not make the appellant eligible to claim cenvat credit on such finished goods - Held that - Prima facie, it appears from para 7.16 read with para 7.4, 7.10, as well as para 7.13 and 7.15, that direction for predeposit is warranted in view of prejudice caused to Revenue. Accordingly, appellant is directed to deposit ₹ 20,00,000 within 8 weeks from today and make compliance on 8.3.2015. Subject to compliance with the above direction, there shall be waiver of predeposit and stay of recovery of balance demand during pendency of appeal - Partial stay granted.

Summary

The judgment by Appellate Tribunal CESTAT CHENNAI in 2015 (2) TMI 98 involved a dispute over inadmissible cenvat credit. The appellant was directed to deposit Rs. 20,00,000 within 8 weeks to avoid predeposit and stay the recovery of the balance demand during the appeal process.