2008 (6) TMI 74 - AT - Service Tax

Demand has arisen on the ground, that the applicant has availed ineligible Cenvat credit on the input services of CHA s service, Travel Agent s services, Rent-a-cab services, Security services Catering services etc. - issue involved in this case is arguable one and needs to be gone in detail at the time final hearing - applicant has not made out prima facie case for complete waiver of differential duty

Summary

Issues:
Delay in filing supplementary appeals, waiver of pre-deposit and penalty, eligibility of Cenvat credit on various input services.

Delay in Filing Supplementary Appeals:
The Appellate Tribunal, upon reviewing the record, noted that the main appeal was filed on time. Consequently, the delay in filing the supplementary appeals was condoned, and the appeals were taken on record.

Waiver of Pre-deposit and Penalty:
The stay applications were related to the waiver of pre-deposit amounting to Rs. 12,07,040/- and a penalty of Rs. 70,000/-. After hearing both sides and examining the record, the Tribunal addressed the issue of demand confirmation arising from the applicant's availing of ineligible Cenvat credit on various input services. The Tribunal found the issue to be arguable and requiring detailed consideration during the final hearing. The applicant was directed to pre-deposit Rs. 1,00,000/- within four weeks, with compliance to be reported by a specified date. Upon compliance, the pre-deposit of the balance amount was waived, and recovery stayed until the appeals' disposal.

Eligibility of Cenvat Credit on Input Services:
The confirmation of demand was based on the applicant availing ineligible Cenvat credit on a range of input services, such as Customs House Agent's Services, Travel Agent's Services, Rent-a-cab Services, Security Services, Catering Services, and others. The Tribunal highlighted the need for a detailed examination of these services during the final hearing. The applicant was directed to make a partial pre-deposit, with the condition of pre-deposit of the remaining amount being waived subject to compliance and recovery stayed until the appeals' resolution.

This detailed analysis covers the issues of delay in filing supplementary appeals, waiver of pre-deposit and penalty, and the eligibility of Cenvat credit on various input services as addressed in the Appellate Tribunal's judgment.