2012 (9) TMI 269 - AT - Service Tax

Waiver of pre-deposit - CENVAT credit denied to the appellant on rent-a-cab service Held that - Earlier appeals of the same assessee, similar stay applications were allowed - there will be waiver of pre-deposit and stay of recovery Cenvat Credit - outdoor catering service for supply of food to workers Held that - They did not have more than 250 workers in their factory to make it obligatory for them to provide canteen facility within the factory premises - statutory obligation of the manufacturer under the Factories Act to provide internal canteen facility to workers exceeding 250 in number has a bearing on any claim for CENVAT credit on outdoor catering service employed in such canteen for supply of food to the workers - appellant directed to make pre-deposit

Summary

Issues: COD applications for filing appeals, waiver of pre-deposit and stay of recovery for denied CENVAT credit on rent-a-cab service, denial of CENVAT credit on outdoor catering service, applicability of statutory obligation under the Factories Act on CENVAT credit.

Analysis:
1. COD Applications: The COD applications for filing appeals were allowed due to a short delay of five days, which was satisfactorily explained.

2. Waiver of Pre-deposit and Stay of Recovery: In Appeal Nos. E/1651, 1653, 1654/2011, the appellant sought waiver of pre-deposit and stay of recovery for denied CENVAT credit on rent-a-cab service. The Tribunal noted that similar stay applications were allowed in earlier appeals of the same assessee. Therefore, the Tribunal granted the waiver of pre-deposit and stay of recovery as prayed for.

3. Denial of CENVAT Credit on Outdoor Catering Service: In Appeal No. E/1652/2011, CENVAT credit of Rs. 3,20,749/- was denied to the appellant for the period from July 2008 to May 2009 in respect of outdoor catering service provided to workers. The denial was based on the appellant's failure to produce a CAS-4 certificate and not employing more than 250 workers in their factory. The appellant argued for similar relief granted in earlier appeals and contested the applicability of a High Court judgment regarding the statutory obligation under the Factories Act. The Tribunal found that the appellant had not made out a prima facie case against the demand. The lower appellate authority's finding on the number of workers was not challenged, and the statutory obligation under the Factories Act was deemed relevant for claiming CENVAT credit on outdoor catering service. Therefore, the Tribunal directed the appellant to pre-deposit Rs. 3,00,000/- within six weeks.

This detailed analysis covers the issues of COD applications, waiver of pre-deposit and stay of recovery, and the denial of CENVAT credit on outdoor catering service, including the application of the statutory obligation under the Factories Act in the judgment delivered by the Appellate Tribunal CESTAT, Bangalore.