Input service credit on cashless repair services accepted prima facie, supporting full pre-deposit waiver and stay of recovery.

Input service credit on repair services under a cashless motor insurance arrangement was treated as prima facie sustainable where authorised service stations carried out the repairs on behalf of the insurer and the insurer bore the charges, including service tax. A Board circular was relied on to treat the insurer as the service recipient for these services. On that basis, the claim was considered strong enough for interim relief, and waiver of the entire pre-deposit with stay of recovery during the appeal was granted.

---

---

Issues: Whether the insurance company was prima facie entitled to input service credit on repair services availed under the cashless scheme, and consequently to waiver of pre-deposit.

Analysis: The repair work was undertaken by authorised service stations on behalf of the insurance company under the cashless arrangement, and the insurer bore the charges including service tax. A Board circular was relied upon to treat the insurance company as the service receiver for such services. On that basis, the credit claim was held to be prima facie sustainable for the purpose of interim relief.

Conclusion: The applicant was held entitled to waiver of the entire pre-deposit and stay of recovery during pendency of the appeal.

---