2013 (3) TMI 253 - AT - Service Tax

Waiver of pre deposit - Cenvat Credit - Input Services - construction of residential units for employees - held that - Hon ble High Court of Bombay in the case of Manikgarh Cement 2010 (10) TMI 10 - BOMBAY HIGH COURT laid down that establishing residential colony for employees may be welfare activity, and the same is not covered by the input service definition. - Since sufficient amount has already been deposited, balance amount is waived.

Summary

The Appellate Tribunal CESTAT New Delhi confirmed a credit of Rs. 66,85,785 against the appellant for denying Modvat credit on tax paid for construction of residential units for employees. The Tribunal granted stay to the appellants based on a decision by the High Court of Andhra Pradesh in favor of the assessee. The appellants had already deposited Rs. 11,24,945, which was deemed sufficient under the Central Excise Rules, so the pre-deposit condition for the balance amount of duty, interest, and penalty was dispensed with.