Pre-deposit waiver in service tax dispute over Cenvat credit utilisation granted pending appeal.

In a dispute over discharge of service tax liability through utilisation of Cenvat credit, the controversy was treated as raising a question of law on whether immediate pre-deposit should be insisted upon during the appeal. The tribunal noted that the appellant was for the time being deprived of using the Cenvat credit and that this weighed against requiring upfront deposit pending the appeal. Waiver of pre-deposit was therefore granted until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit pending appeal in a dispute concerning discharge of service tax liability by utilisation of Cenvat credit and the effect of such utilisation on revenue prejudice.

Analysis: The matter was treated as involving a question of law. It was noticed that the appellant was for the time being deprived of making use of the Cenvat credit, and that the controversy did not call for insistence on immediate pre-deposit during the pendency of the appeal.

Outcome: Waiver of pre-deposit was granted pending disposal of the appeal.

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