Input service credit verification dispute led to a conditional remand with pre-deposit and document production requirements.

The dispute concerned verification of credit taken on common input services and the resulting requirement to maintain separate accounts and restrict credit utilisation for exempted services. The Tribunal noted that an earlier remand had called for factual verification, but the appellant had not fully cooperated or produced the required documents despite opportunities. It therefore granted a further opportunity for verification, but made continued consideration conditional on a pre-deposit and production of supporting records and a worksheet before the Commissioner, with liberty to seek extension if warranted.

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Issues: Whether the matter should be remanded for fresh verification and whether the appellant should be directed to make a pre-deposit as a condition for further consideration.

Analysis: The dispute turned on the appellant's claim that credit was not taken on all common input services and that, therefore, the requirement to maintain separate accounts and the restriction on utilisation of credit for exempted services would not apply. The earlier remand had specifically called for verification of the factual position, but the record showed that the appellant did not cooperate fully with the departmental verification process and did not produce the necessary documents despite opportunities. In these circumstances, the Tribunal found that another opportunity should be granted, but only on terms that would ensure compliance and proper verification of the credit taken and utilised.

Conclusion: The appeal was disposed of by directing the appellant to make a pre-deposit of Rs. 50 lakhs within eight weeks and to submit supporting documents and a worksheet before the Commissioner, with liberty to seek extension from the Commissioner if warranted.

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