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CUSTOM EXCISE & SERVICE TAX APPELLATE TRIBUNAL, MADRAS
MS. JYOTI BALASUNDARAM, VICE-PRESIDENT
Astra Tel -Appellant
Versus
Commissioner of Central Excise, Ltu, Chennai -Respondent
STAY ORDER NO. 593/2010 APPLICATION NO. E/S/298/2010 APPEAL NO. E/581/2010
Decided On : 03-12-2010
Smt. Prameela Viswanathan,C. Dhanasekaran
Heard both sides on the application for waiver of pre-deposit of Rs. 3,56,504 being the amount of credit disallowed on Business Auxiliary Services such as Sales Promotion, Storage and Removal of export goods. Credit has been denied on the ground that the services cannot be considered as input services as they have not been used directly or indirectly in or in relation to the manufacture of the final products.
2. As regards sales promotion and market research, prima facie these services are in relation to the business of manufacture of final products and hence prima facie the assessees can take credit of the tax paid, in the light of the decision of the Hon'ble High Court in the case of CCE, Nagpur v. Ultra Tech Cement Ltd. -2010-TIOL-745-HC-MUM-ST = 2010 (20) S.T.R. 577 (Bom.). As regards storage and delivery of goods of which credit of tax paid has been denied for the reason that these services were rendered beyond the place of removal, I find prima facie force in the contention of the assessees that since admittedly the goods in question are export goods, no service tax liability arises thereon. I, therefore, waive pre-deposit of the amount of service tax together with interest and the penalty imposed, and stay recovery thereof during the pendency of the appeal.
