GTA invoice declarations alone are insufficient to prove tax payment for full pre-deposit waiver in a Cenvat credit dispute.

Recipients of GTA service claiming Cenvat credit could not secure complete waiver of pre-deposit merely on the basis of invoice declarations that the transporters had paid service tax. In the absence of independent supporting evidence, such as challans or other proof of actual tax payment, the declarations under Rule 9(1)(e) were insufficient to establish a prima facie case for full relief. The assessee therefore obtained only partial relief, with direction to deposit 50% of the confirmed Cenvat credit demand and waiver of the balance pre-deposit on compliance.

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Issues: Whether the appellants were entitled to waiver of pre-deposit of the confirmed Cenvat credit demand on the basis of invoices issued by the GTA service providers.

Analysis: The appellants, being recipients of GTA service, were liable to pay service tax, though they claimed that the transporters had discharged the tax and that the invoices issued by them constituted valid documents under Rule 9(1)(e) of the Cenvat Credit Rules, 2004. The record, however, did not contain supporting evidence such as challans or other proof of actual payment of service tax by the transporters. Mere declarations on the invoices that tax had been paid were held insufficient to establish discharge of the tax liability. On that basis, the appellants were held not to have shown a prima facie case for complete waiver of pre-deposit.

Conclusion: The appellants were granted only partial relief by being directed to deposit 50% of the confirmed Cenvat credit demand, with waiver of the balance pre-deposit and stay of recovery upon compliance.

Ratio Decidendi: A declaration on GTA invoices, without independent evidence of payment, is insufficient to establish a prima facie case for complete waiver of pre-deposit in a Cenvat credit dispute.

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