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2009 (8) TMI 649 - AT - Service TaxStay / dispensation of pre deposit eligibility of availing cenvat credit - . It is seen that the appellant had entered into an AMC, but services were rendered by the dealers of some other manufacturers of the engines. Since the issue is contentious, we find that all the submissions made by the learned counsel needs to be gone into detail based on evidences on record and the agreements entered by them with their clients. All these things can be done only at the time of final hearing. Accordingly, we are of the considered view that the applicant has not made out a prima fade case for complete waiver. The applicants needs to be put to some conditions. Accordingly, the applicant is directed to freeze an amount of Rs.1,00,00,000/- (Rupees one crore only) in the RG 23 Cenvat account till the disposal of the appeal
Issues: Stay petition against waiver of pre-deposit of Service tax.
In this judgment by the Appellate Tribunal CESTAT, BANGALORE, the issue at hand was the confirmation of demand due to the ineligibility of the applicants to avail Cenvat credit on Service tax paid on input services. The learned counsel argued that the credit was taken on maintenance and repair services and GTA Services. However, upon reviewing the records, it was found that the credit availed on Service tax paid on maintenance and repair services was contentious. The appellant had entered into an Annual Maintenance Contract (AMC), but the services were actually rendered by dealers of other manufacturers. Due to the contentious nature of the issue, the Tribunal decided that a detailed examination of the submissions and evidence was necessary during the final hearing. As a result, the Tribunal concluded that the applicant had not established a prima facie case for complete waiver and imposed conditions. The applicant was directed to freeze an amount of Rs. 1,00,00,000/- in the RG 23 Cenvat account until the appeal's disposal. Upon compliance with this condition, the application for waiver of the pre-deposit of the remaining amounts was allowed, and recovery thereof was stayed until the appeal's final disposal, with a compliance report due on 27-10-2009.
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