2008 (7) TMI 142 - AT - Service Tax

Denial of credit - Applicants availed credit in respect of service tax paid on insurance charges. Insurance charges were in respect of vehicles, such as car school bus, cash transaction and building - Applicants are manufacturer and are entitled to credit only in respect of input used in or in relation to the manufacture of goods. School bus and building are not covered under the scope of inputs or capital goods stay not granted

Summary

The Appellate Tribunal CESTAT NEW DELHI ruled on a case involving waiver of duty and penalty. The applicants sought waiver for duty of Rs. 1,15,181/- and penalty related to service tax on insurance charges for vehicles. The tribunal found that school bus and building were not eligible for credit as inputs for manufacturing goods. The applicants were directed to deposit Rs. 40,000/- within 4 weeks, with the remaining amount of service tax waived upon this deposit. Adjourned to 25th August, 2008 for compliance.