2010 (1) TMI 320 - AT - Service Tax

Pre-deposit- The applicants are not eligible to Cenvat credit availed on CHA services, as it is not an input service. Held that- question of manufacture of final product does not arise except upon receipt of inputs cleared by the CHA to the factory of the appellants. Pre-deposit is, therefore, waived and recovery thereof stayed pending the appeal.

Summary

The appellate tribunal allowed the application for waiver of pre-deposit of Rs. 78,102 as the applicants made a prima facie case that CHA services are eligible for Cenvat credit under Rule 2(l) of the Cenvat Credit Rules, 2004. Pre-deposit was waived, and recovery stayed pending the appeal.