Complete waiver for hearing granted in CENVAT Credit dispute over telecom tower construction inputs

Complete waiver of the demand was granted for hearing the appeal concerning alleged wrongful availment of Service Tax Credit and CENVAT Credit on inputs used for construction of telecommunication towers. The Court noted that co-ordinate Benches had already granted similar waiver relief in identical circumstances and, without expressing any opinion on merits, held that waiver was justified at the stage of hearing. The merits of the credit dispute remained undecided, and the relief was confined to securing consideration of the appeal.

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Issues: Whether complete waiver of demand was warranted for the purpose of hearing the appeal in relation to alleged wrongful availment of Service Tax Credit and CENVAT Credit.

Analysis: The petitioner challenged denial of CENVAT Credit on inputs used for construction of towers for telecommunication services. The Tribunal had declined waiver, but similar matters had already been granted complete waiver by co-ordinate benches in identical circumstances. The Court, without expressing any opinion on merits, accepted that the case for waiver was made out for hearing of the appeal.

Conclusion: Complete waiver was granted to the petitioner for the purpose of hearing of its appeal.

Final Conclusion: The petition succeeded to the limited extent of obtaining waiver relief, and the controversy on merits remained undecided.

Ratio Decidendi: Where identical coordinate-bench orders have granted waiver in similar circumstances, complete waiver may be granted for hearing of the appeal without adjudicating the merits.

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