2014 (2) TMI 905 - AT - Service Tax

Denial of Cenvat credit Rent a cab service and outdoor catering service Waiver of pre-deposit Held that - Prima facie, it was found that the denial of CENVAT credit on Rent-a-Cab Service but it was not found against denial of CENVAT credit on the catering service appellant directed to made a pre-deposit an amount of Rs. 24,789 upon such submission rest of the duty to be stayed till the disposal Partial stay granted.

Summary

Issues:
1. Waiver and stay sought for denied CENVAT credit and penalty.
2. Denial of CENVAT credit for 'Rent-a-Cab service' and 'Outdoor Catering Service'.
3. Pre-deposit requirement for specific CENVAT credit denial.
4. Certification requirement for reversal of impugned demand amount.

Analysis:
1. The appellant filed an application seeking waiver and stay for denied CENVAT credit of Rs. 74,877/- and an equal penalty. The credit was denied for 'Rent-a-Cab service' and 'Outdoor Catering Service'. The bench noted a prima facie case against the denial of credit for 'Rent-a-Cab service' in a previous case but not for 'Outdoor Catering Service'. The appellant was directed to pre-deposit Rs. 24,789/- for the catering service credit denial within 6 weeks and report compliance. Waiver and stay were granted for the 'Rent-a-Cab Service' credit and penalties subject to the pre-deposit.

2. The appellant's counsel highlighted that the appellant had reversed Rs. 9916/- of the impugned demand after filing the appeal and stay application. However, the excerpt from the CENVAT account provided was not certified. The appellant was permitted to produce a certified excerpt from the CENVAT account to claim credit of the reversed amount against the pre-deposit. It was clarified that without the Range Officer's certificate, the appellant must pre-deposit the entire directed amount.

This judgment addresses the issues related to waiver and stay for denied CENVAT credit and penalties, the denial of credit for specific services, the requirement for pre-deposit in such cases, and the certification necessity for reversed demand amounts. The appellant was given specific directions regarding pre-deposit amounts and certification requirements to avail credit against the pre-deposit.