2008 (8) TMI 277 - AT - Service Tax

Credit of service tax paid in respect of dredging services at the appellant s own port denied on the ground that the dredging undertaken at the port cannot be said to have any relation to the manufacture and clearance of the final product i.e. clinker - issue is contentious and a final view can only be taken at the stage of disposal of the appeal stay partly granted

Summary

The Appellate Tribunal CESTAT Ahmedabad confirmed Service Tax of Rs. 55,64,757 against the appellant for denying credit of service tax paid on 'dredging services' at their port. The denial was based on lack of relation to manufacturing final products and non-exclusive use for clearance. The appellant offered to deposit Rs. 10 lakhs, accepted by the tribunal, leading to waiver of balance amount of duty and penalty during appeal.