Pre-deposit and Cenvat credit relief turned on prima facie linkage to statutory canteen obligations and prior interim relief.

Delay in filing the appeals was satisfactorily explained, so the condonation applications were allowed. Waiver of pre-deposit and stay of recovery were granted for the rent-a-cab service appeals because similar interim relief had already been allowed in earlier proceedings involving the same assessee. For Cenvat credit denied on outdoor catering service, the record showed no challenge to the finding that the factory employed not more than 250 workers, and the canteen obligation under the Factories Act was relevant; however, a prima facie case for full waiver was not made out, so a pre-deposit of Rs. 3,00,000 was directed within six weeks.

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Issues: (i) Whether delay in filing the appeals warranted condonation; (ii) whether waiver of pre-deposit and stay of recovery were justified in respect of the rent-a-cab service claims; (iii) whether the appellant made out a prima facie case for waiver of pre-deposit in relation to Cenvat credit denied on outdoor catering service.

Issue (i): Whether delay in filing the appeals warranted condonation.

Analysis: The delay was short and was found to have been satisfactorily explained.

Conclusion: The delay was condoned and the COD applications were allowed.

Issue (ii): Whether waiver of pre-deposit and stay of recovery were justified in respect of the rent-a-cab service claims.

Analysis: The applications related to the same assessee and to similar relief already granted in earlier stay proceedings.

Conclusion: Waiver of pre-deposit and stay of recovery were granted for those appeals.

Issue (iii): Whether the appellant made out a prima facie case for waiver of pre-deposit in relation to Cenvat credit denied on outdoor catering service.

Analysis: The finding that the factory did not employ more than 250 workers was not challenged, and the statutory obligation to provide canteen facilities under Section 46 of the Factories Act was relevant to the claim for credit on outdoor catering service. On that basis, a prima facie case was not established for the full amount in dispute.

Conclusion: The appellant was directed to pre-deposit Rs. 3,00,000 within six weeks.

Final Conclusion: The proceedings were disposed of by allowing the preliminary delay applications, granting interim relief in part, and directing a substantial pre-deposit in one appeal.

Ratio Decidendi: Where a statutory obligation to provide canteen facilities exists, the claim for Cenvat credit on outdoor catering service depends on the prima facie linkage between that obligation and the service used, and interim relief may be confined if such linkage is not established on the record.

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