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2015 (2) TMI 523 - CESTAT CHENNAIWaiver of predeposit of CENVAT credit - Capital goods - adjudicating authority has confirmed the demand on ineligible credit on capital goods as well as on input services utilized in various activities and for construction of rest room in the railway yard - Held that:- applicants have used rails, dust separation system, tyre cleaning system etc. in the railway yard. The applicants have also availed input service credit on the construction service for the construction of railway rest room at railway yard. - all the capital goods are installed and used in the railway yard for handling and transportation of coal from the railway yard to the captive power plant. The Hon'ble High Court of Rajasthan in the case of Aditya Cements (2007 (3) TMI 190 - HIGH COURT RAJASTHAN) held that use of materials in the railway track are essential for transporting fuel for manufacture of final product in the plant. As regards the input service, I find that the applicants have availed input service tax of construction service used in the construction of rest rooms in the railway yard which has no nexus to the manufacture of excisable goods. The case law relied by the applicants are not applicable to the present case. Prima facie, the applicants have not made out a prima facie case for waiver of predeposit of entire dues in respect of demand on input service credit. - Partial stay granted.
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