2009 (11) TMI 423 - AT - Service Tax

Stay- Cenvat Credit- demand has been confirmed as Cenvat credit not admissible for the reason as the service distributor who distributed the credit to the foreign unit was not registered while the registration was mandatory. Held that-pre-deposit waived and recovery stayed in view of relevant High Court order.

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of predeposit of Rs. 85,13,046 due to inadmissible Cenvat credit. The demand was confirmed as the input service distributor was not registered, making the documents invalid. Relying on a Gujarat High Court decision, predeposit of the amounts was dispensed with and recovery stayed pending appeal.