2011 (2) TMI 791 - AT - Service Tax

Waiver of pre-deposit - Eligibility of credit on capital goods - the capital goods were procured by the Madurai Circle of BSNL and transferred to Kumbakonam Circle of BSNL and that the documents based on which credit was taken is not authorized document - find that there is no dispute about the duty paid nature of the capital goods and receipt of the same and use for the intended purpose by the applicant. Therefore prima facie the applicants have made out a case for waiver of the dues as per the impugned order - Decided in favour of assessee.

Summary

Issues:
1. Restoration of appeal dismissed for want of clearance from Committee on Disputes.
2. Eligibility of credit on capital goods transferred between different circles of BSNL.

Analysis:
1. The judgment addresses the issue of restoration of an appeal (No. 242 of 2007) that was dismissed for lack of clearance from the Committee on Disputes. The Tribunal, in Final Order No. 828 & 829 of 2008, allowed the application for restoration as the clearance to pursue the appeal had been obtained and placed on records. Consequently, the order dated 1.8.2008 dismissing the appeal was recalled, and the appeal along with the stay petition were restored to their original numbers. This decision was made after hearing both sides on the application for restoration.

2. The second issue pertains to the eligibility of credit on capital goods taken by the Kumbakonam Circle of BSNL, which were initially procured by the Madurai Circle of BSNL and then transferred. The dispute centered around the authorization of the documents based on which credit was claimed. Upon reviewing the records and submissions, the Tribunal found that there was no disagreement regarding the duty paid nature of the capital goods, their receipt, and their use for the intended purpose by the applicant. Consequently, the Tribunal concluded that the applicants had established a prima facie case for waiver of the dues as per the impugned order. In light of this, the Tribunal decided to waive the pre-deposit of the dues and stayed the recovery until the appeal was disposed of. The appeal was scheduled for final hearing on 23.02.2011, as pronounced in open court by M Veeraiyan.