2013 (11) TMI 796 - AT - Service Tax

Eligibility to cenvat credit - Service tax on garden services and repairs and maintenance services of the sewage plant Scope of Input Services under Rule 2 (I) of Cenvat credit Rules,2004 - Waiver of Pre-deposit Held that - The assessee is claiming cenvat credit in relation to the manufacturing of their final product - the issue is being contested on merits - the amount reversed by the appellant is enough to hear and dispose the appeal - application for the waiver of the pre-deposit of the balance allowed till the disposal Stay granted.

Summary

Issues:
Waiver of pre-deposit of ineligible cenvat credit, interest, and penalties under Section 11AC of the Central Excise Act, 1944.

Analysis:
The stay petition was filed seeking the waiver of pre-deposit of an amount denied as ineligible cenvat credit, along with interest and penalties under Section 11AC of the Central Excise Act, 1944. The issue at hand was the eligibility of the service tax paid on garden services and repairs and maintenance services of the sewage plant for cenvat credit. The lower authorities had deemed these amounts as ineligible cenvat credit, stating that the services did not fall under the category of input services as defined under Rule 2(l) of the Cenvat Credit Rules, 2004.

The counsel for the appellant had initially requested an adjournment due to personal difficulties, which was rejected by the presiding officer, Mr. M.V. Ravindran, considering the narrow scope of the issue. The appellant had reversed the entire cenvat credit but had not reversed the interest and penalties imposed. The appellant contested the issue on merits, claiming eligibility for cenvat credit on the services in question.

Upon reviewing the submissions, it was found that the core issue revolved around the eligibility of cenvat credit for the service tax paid on garden services and repairs and maintenance services of the sewage plant. As the appellant had already reversed a significant amount of the credit and was contesting the issue on its merits, the presiding officer deemed the reversed amount sufficient for the appeal's consideration. Consequently, the application for the waiver of the pre-deposit of the remaining balance amounts was allowed, and recovery was stayed pending the appeal's disposal.