2008 (5) TMI 150 - AT - Service Tax

On the basis of CBEC Circular dated 23-8-2007 providing that input credit taken cannot be utilized for payment of Service tax, credit was denied on input service towards payment of Service tax on Agency Commission falling under the category of Insurance Auxiliary Services and Management Consultancy Services Prima facie the issue stands settled in favour of the applicants by Tribunal s decision in Nahar Industrial Enterprises Ltd. stay granted

Summary

The Appellate Tribunal CESTAT Mumbai heard an application for waiver of pre-deposit of Service Tax and penalty imposed under Section 77 of the Finance Act, 1944. The demand was confirmed by denying Cenvat Credit on input service for payment of Service tax on Agency Commission. The issue was settled in favor of the applicants based on previous Tribunal decisions, allowing the utilization of Cenvat credit for payment of Service tax by the service recipient. The Tribunal waived the pre-deposit amounts and stayed recovery pending the appeal.