Input service credit for clearing agency services was denied for full pre-deposit waiver after clearance from the place of removal.

Credit of service tax on clearing agency services was considered for waiver of pre-deposit, but the services were described as having been used after clearance of final products from the place of removal and not in or in relation to manufacture or clearance from the place of removal. On that basis, no prima facie case was shown for complete waiver of tax and penalty. Full waiver of pre-deposit was declined, and only partial interim relief was granted, with the balance liability kept in abeyance pending disposal of the appeal.

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Issues: Whether credit of service tax paid on clearing agency services was admissible as input service for purposes of waiver of pre-deposit.

Analysis: The services were stated to have been used after clearance of the final products from the place of removal, and not directly or indirectly in or in relation to manufacture of the final product or clearance from the place of removal. In these circumstances, the applicant did not establish a prima facie case for waiver of the entire amount of tax and penalty.

Conclusion: The claim for full waiver of pre-deposit was declined and a partial pre-deposit was directed.

Final Conclusion: Interim relief was granted only to a limited extent, with the balance liability kept in abeyance pending disposal of the appeal.

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