2010 (2) TMI 374 - AT - Service Tax

Cenvat credit- Appellate Authority following the decision in the case of Ellora Times Ltd. v. CCE 2009 -TMI - 32159 - CESTAT AHEMDABAD disallowed the Cenvat credit. Held that- When such a view is also possible which is labour welfare measure, a pedantic view cannot be taken to call for pre-deposit. Therefore, there shall be waiver of pre-deposit and stay of realisation of the demand during pendency of appeal.

Summary

The Appellate Tribunal CESTAT, New Delhi disallowed Cenvat credit of Rs. 3,56,790/- for insurance services received by the appellant for insuring its employees and their health. The decision was based on the case of Ellora Times Ltd. v. CCE. The Adjudicating authority reasoned that the insurance service had no connection with the manufacturing activity. A waiver of pre-deposit and stay of realization of the demand was granted during the appeal.