Input service credit on GTA transport for vehicles to service premises supported complete waiver of pre-deposit.

Service tax paid on GTA services used to transport vehicles to the service station was treated as having a strong prima facie nexus with the appellant's output service tax liability, because the vehicles had to be brought to the premises for servicing and the credit was used accordingly. On that basis, the input service credit claim was regarded as supportable at the interim stage, and the demand for pre-deposit was not accepted. Complete waiver of pre-deposit was granted, and no coercive recovery was to be taken pending disposal of the appeal.

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Issues: Whether service tax paid on GTA services used for transporting vehicles to the service station was admissible as input service credit for discharging output service tax liability, and whether complete waiver of pre-deposit was warranted.

Analysis: The vehicles received for servicing had to be brought to the appellant's premises, and the service tax paid on GTA services was utilised as credit against output service tax. On that basis, the credit claim was treated as having a strong prima facie footing, and the demand for pre-deposit was not accepted.

Outcome: Complete waiver of pre-deposit was granted and no coercive recovery was to be taken pending disposal of the appeal.

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