2009 (12) TMI 366 - AT - Service Tax

Stay-Pre-dispensation- The reason for disallowing the credit is non-payment of service tax by the input service providers upon whom the liability is cast in law for payment of service tax. Held that-non payment of amount to revenue prima facie not a ground to deny credit when tax paid to service provider. Pre-deposit waived.

Summary

The Appellate Tribunal CESTAT, Chennai granted waiver of pre-deposit of total amount of Rs. 27,47,644/- in the case of M/s. LASON INDIA PVT. LTD. The Commissioner allowed refund of Rs. 18,75,380/- but disallowed credit due to non-payment of service tax by input service providers. The Tribunal held that the service provider's non-payment cannot deny the assessee's credit entitlement.