Cenvat credit on high sea sale imports: prima facie documents and tax incidence supported waiver of pre-deposit and stay.

Eligibility for Cenvat credit on service tax paid for services connected with high sea sale imports was examined where the supporting invoices were in the names of persons other than the appellant. A prima facie view was taken that the expenditure related to the imported goods, the appellant had borne the service tax, and the import chain and documents furnished sufficient basis to consider credit eligibility at the appeal stage. On that basis, waiver of pre-deposit and stay of recovery were granted pending disposal of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery was justified in a dispute relating to Cenvat credit on service tax paid for services connected with high sea sale import, where the invoices stood in the name of persons other than the appellant.

Analysis: The dispute mainly concerned invoices and bills raised in the name of parties other than the present importer, though the goods had been purchased on high sea sale basis. It was noted that the expenditure was incurred in connection with the imported goods and that the appellant had borne the service tax. On a prima facie view, the services related to the imported inputs used by the appellant, and the documents and import chain furnished a sufficient basis for examining eligibility at the appeal stage.

Conclusion: The appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

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