2014 (2) TMI 480 - AT - Service Tax

Waiver of pre deposit - Demand of service tax - Reversal of CENVAT Credit - Held that - Waiver and stay can be granted to the assessee inasmuch as a major part of the CENVAT credit in question was reversed by them and there is no outstanding dispute with regard to the credit of Rs.9,800 - Stay granted.

Summary

Issues:
1. Adjudication of CENVAT credit from a show-cause notice
2. Appeal against the Commissioner (Appeals) order
3. Invocation of Section 84 of the Finance Act, 1994
4. Granting of waiver and stay for CENVAT credit
5. Listing of appeals for joint hearing

Analysis:

1. The judgment pertains to three appeals pending before the Appellate Tribunal CESTAT BANGALORE, all originating from a single show-cause notice dated 15.12.2008 issued by the Additional Commissioner. The appeals include two by the assessee (ST/988/2011 and E/166/2010) and one by the department (ST/16/2010). The original authority had allowed CENVAT credit of Rs.22.81 lakhs but denied Rs.9,800/- due to improper documents. The assessee appealed against the advice to follow the procedure relating to input service distributor, which was upheld by the Commissioner (Appeals). Additionally, Section 84 of the Finance Act, 1994 was invoked by the Commissioner as a revisionary authority disallowing the entire CENVAT credit, leading to appeal No.ST/988/2011 and a connected stay application against the order-in-revision.

2. The Tribunal, after hearing both parties and considering their submissions, decided to grant waiver and stay to the assessee. This decision was based on the fact that a significant portion of the disputed CENVAT credit had already been reversed by the assessee, leaving no outstanding dispute regarding the credit of Rs.9,800/-. Consequently, the waiver and stay were ordered accordingly.

3. Furthermore, the Tribunal directed that all three appeals, including the one against the Commissioner (Appeals) order and the one related to the order-in-revision, would be listed for joint hearing in due course. This decision aimed to ensure a comprehensive and efficient resolution of the disputes at hand by consolidating the hearings for all related appeals.

In conclusion, the judgment addressed various issues related to CENVAT credit adjudication, appeals against Commissioner (Appeals) orders, the invocation of Section 84 of the Finance Act, 1994, granting waiver and stay for CENVAT credit, and listing all appeals for joint hearing to streamline the resolution process effectively.