Partial stay on disputed service tax credit claims granted after pre-deposit was ordered and full waiver refused.

In a stay application concerning service tax credit amendments, the Tribunal found a prima facie dispute on the applicability of the credit provisions, but declined complete waiver because the appellant did not establish a case for total protection and had not adequately addressed objections about missing invoice dates and non-cooperation in furnishing correlation details. Balancing the competing considerations, it granted only partial interim relief by directing a pre-deposit of Rs. 50 lakhs within eight weeks, with the balance of duty and penalty waived pending disposal of the appeal.

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Issues: Whether the appellant was entitled to complete waiver of the confirmed duty and penalty at the stay stage, and what pre-deposit condition should be imposed pending disposal of the appeal.

Analysis: The record disclosed a prima facie dispute on the effect of the amendments to the service tax credit regime and the applicability of the credit provisions relied upon by the appellant. At the same time, the appellant had not established a case for total waiver, particularly in view of the department's objections regarding the absence of invoice dates and non-cooperation in furnishing particulars for correlation. In these circumstances, the balance of convenience justified partial protection rather than full stay.

Conclusion: Complete waiver was declined. The appellant was directed to deposit Rs. 50 lakhs within eight weeks, and upon such deposit the remaining duty and penalty stood waived pending the appeal.

Final Conclusion: The stay application was disposed of by granting only partial interim relief, subject to a substantial pre-deposit.

Ratio Decidendi: In a stay application, where a full waiver is not made out on the available material, the Tribunal may grant only partial protection by directing a pre-deposit and waiving the balance pending appeal.

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