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TMI Blog2015 (5) TMI 329X X X X Extracts X X X X X X X X Extracts X X X X ..... and used in the manufacture of finished goods. Also, prima facie it is not understandable as how payment of service tax by M/s L&T Ltd. treating the project as works contract, would deprive M/s Tata Steel Ltd to avail credit on the duty paid capital goods sold/supplied. Thus, we are of the opinion, that the Applicants could able to make out a prima-facie case for total waiver of pre-deposit of dues adjudged. Consequently, pre-deposit of dues adjudged against all the Applicants are waived and its recovery is stayed during pendency of appeals - Stay granted. - SP-71425, 71448 & 71449/2013, Ex. Appeal Nos. 71365, 71383 & 71384/2013 - Stay Order Nos. 76956-76958/2014 - Dated:- 9-12-2014 - D. M. Misra And I. P. Lal,JJ. For the Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the first financial year and balance 50% in the subsequent financial year. The capital goods were received by the Applicant M/s Tata Steel Ltd in their stores and issued from time to time to M/s L T Ltd. for execution of the project. He submits that M/s L T Ltd. has discharged service tax against works contract services considering the said job as a composite contract and the department has not raised any dispute on the payment of service tax. He further submits that there is no dispute on the eligibility of the credit on these capital goods as defined under Rule 2(a) of the CENVAT Credit Rules nor its installation and use in relation to the manufacture of finished goods by M/s Tata Steel Ltd in their factory premises. The only objecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ally agreed for supply as well as rendering of service, therefore, the capital goods which were sold by M/s L T Ltd. to the Applicant, cannot be eligible to cenvat credit being input for M/s L T Ltd. in providing the output service of works contract service He submits that M/s L T Ltd. has knowingly issued the invoices for sale/ supply of materials, even though, the job is of composite works contract service, accordingly, they are liable for penalty. 6. Prima-facie, we find that the Applicant M/s Tata Steel Ltd has availed cenvat credit on the capital goods sold/ supplied by M/s L T, which were later installed and used in or in relation to the manufacture of finished goods in their premises, a fact not in dispute. At this stage, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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