2014 (12) TMI 1002 - AT - Service Tax

Waiver of pre deposit - Insurance service - whether the credit of Service Tax paid on insurance services is admissible to the appellant or not - Held that - both the factory premises and the adjoining plot are owned by the appellant for which the insurance services have been availed. There is no evidence brought out on records that the vacant plot is owned by any other individual other than appellant. Insurance Services have also been availed by the appellant for which the premium is also paid by them. A case of complete waiver has prima facie been made by the appellant. Accordingly stay is granted to the appellant against recovery of confirmed dues and penalty imposed upon the appellant till the disposal of the appeal. - Stay granted.

Summary

Issues:
- Admissibility of credit of Service Tax paid on insurance services to the appellant.

Analysis:
The appeal and stay application were filed against OIA No. SRP/197/VAPI/2012-13, dated 9-1-2013, to determine whether the credit of Service Tax paid on insurance services is admissible to the appellant. The appellant, represented by Shri Rahul Gajera, argued that they should be allowed the credit based on precedents like Idea Cellular Ltd. v. CCE, Meerut-I, DSCL Sugar v. CCE, Lucknow, and Agriculture Products Market Committee v. CCE, Vadodara-II. On the other hand, Shri G. P. Thomas, representing the respondent, contended that the insurance premium was not related to the manufacturing plant, justifying the denial of credit by the first appellate authority.

Upon hearing both sides and examining the case records, it was noted that both the factory premises and the adjoining plot were owned by the appellant, with insurance services availed for both properties. The appellant had paid the insurance premium for these services, and there was no evidence suggesting ownership of the vacant plot by any other individual. Considering the arguments and the evidence presented, a prima facie case was established by the appellant, leading to the grant of a stay against the recovery of confirmed dues and penalties until the appeal's final disposal.

In conclusion, the appellate tribunal granted the appellant a stay against the recovery of dues and penalties, allowing them to avail the credit of Service Tax paid on insurance services until the appeal is resolved. The decision was based on the ownership of the properties by the appellant and the absence of evidence indicating ownership by any other party, aligning with the precedents cited in support of the appellant's case.