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2013 (8) TMI 673 - AT - Service TaxCENVAT credit - Input Service - The assesse were manufacturer of ball and roller bearings chargeable to Central Excise duty in their factory - They avail Cenvat credit of Central Excise duty paid on inputs and capital goods and of Service Tax paid on input services used in or in relation to manufacture of their final products - The department was of the view that the assesse had wrongly taken service tax credit along with interest and imposition of penalty on them under Rule 15 of Cenvat Credit Rules, 2004 - Held that:- All the services had nexus with the manufacturing business of the assesse and hence the same being services related to manufacturing business of the assesse would be covered by the definition of ‘input service’. Internet Connection Service - Website Development Service - Rent-a-car Service – General Insurance Service – Held that:- As Decided in CCE, Nagpur Versus Ultratech Cement Ltd. [2010 (10) TMI 13 - BOMBAY HIGH COURT] interest connection service was held as input service – the service of website development was covered by the definition of input as decided in UNIVERSAL CABLES LTD. Versus COMMISSIONER OF C. EX., BHOPAL [2007 (3) TMI 99 - CESTAT,NEW DELHI] - The service of rent-a-car was covered by the definition of ‘input service’ as it was held in COMMISSIONER OF CENTRAL EXCISE, JAIPUR-II Versus J. K. CEMENT WORKS [2009 (1) TMI 146 - CESTAT NEW DELHI] - As regards, the service of general insurance for plant and machinery to cover the assesse against losses due to fire, machinery break down etc. - The service was also covered by the definition of input service and would be eligible for Cenvat credit – Following COMMISSIONER OF C. EX., RAIPUR Versus BEEKAY ENGG. & CASTINGS LTD. [2009 (6) TMI 96 - CESTAT, NEW DELHI] - The total Cenvat credit availed in respect of insurance service, internet access/connection service and website development service was about Rs. 16 lakhs which appeared to had been correctly availed. Waiver of Pre-deposit - Assesse had a prima facie case in their favour and requiring them to pre-deposit the amount of Cenvat credit demand, interest and penalty would cause undue hardship - The requirement of pre-deposit of Cenvat credit demand, interest and penalty was waived for hearing of this appeal and recovery was stayed till the disposal of the appeal – Stay Granted – Decided in favor of assesse.
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