2010 (9) TMI 480 - AT - Service Tax

Cenvat credit - Rule 2 of Cenvat Credit Rules 2004 - Benefit of credit of service tax of Rs. 1, 80, 815/- stands denied to the appellant on the ground that the same relates to service tax paid on bank charges which cannot be considered to be an input service - in as much as bank charges are activities relating to business the same are covered under the definition of input service as defined in Rule 2 of Cenvat Credit Rules 2004 - the stay petition is allowed unconditionally

Summary

The Appellate Tribunal CESTAT, Ahmedabad allowed the stay petition unconditionally as the appellant's contention that bank charges are covered under the definition of input service was found to have prima facie force. Benefit of credit of service tax of Rs. 1,80,815/- was denied initially but later allowed.