2009 (6) TMI 98 - AT - Service Tax

Whether the Cenvat credit of service tax paid on overseas commission by the applicant being the recipient of the service, is admissible. The contention of the learned DR is that service tax paid by the applicant in respect of overseas commission has not been utilised in or in relation to the manufacture of final product and therefore, they are not eligible for Cenvat credit. We find that the applicant paid the service tax as recipient of services on overseas commission. It is also seen that the service is related to manufacture of their final goods. Therefore, the applicant made out a prima facie case for waiver of pre-deposit of tax and penalty. Accordingly, the pre-deposit of tax and penalty is waived till disposal of the appeal. Stay petition is allowed.

Summary

The Appellate Tribunal CESTAT, New Delhi granted waiver of pre-deposit of tax Rs. 2,44,783/- and penalty of Rs. 10,000/- in a case involving Cenvat credit of service tax paid on overseas commission. The applicant, as the recipient of the service, was found eligible for the credit as the service was related to the manufacture of final goods. The pre-deposit of tax and penalty was waived until the appeal's disposal, with the stay petition being allowed.