2009 (7) TMI 823 - AT - Service Tax

Waiver of pre-deposit - Penalty Cenvat credit on capital goods for payment of service tax towards outward GTA service - findings of Commissioner (Appeals) is that they are required to pay tax by cash Held that - Notification No. 10/2008-C.E. (N.T.) was not placed before the Commissioner (Appeals) - applications failed to make out prima facie case for total waiver of pre-deposit of entire amount of tax and penalty directed to pay amount of pre-deposit

Summary

The applicants sought waiver of pre-deposit of tax and penalty. The issue was about utilizing Cenvat credit on capital goods for service tax payment. The Commissioner's decision was based on an omitted rule, but the applicants argued for credit based on a later notification and rule amendment. The Tribunal directed the applicants to deposit Rs. 1 lakh within 6 weeks, with the balance tax and penalty waived and recovery stayed pending appeal. The appeal was tagged with another filed by the Revenue.