Pre-deposit waiver for Cenvat credit accepted on settled services, but denied for credit based on unregistered vendor invoices.

Pre-deposit was waived for Cenvat credit on rent-a-cab and outdoor catering services because eligibility was supported by settled tribunal and High Court precedent, and no material evidence contradicted the applicant's claim. Relief was refused for credit taken on invoices issued by unregistered vendors because the explanation for entitlement was not satisfactorily established. The applications were therefore allowed in part, with stay on recovery for the balance dues and deposit directed only for the component linked to unregistered vendor invoices.

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Issues: (i) whether pre-deposit was required in respect of Cenvat credit taken on rent-a-cab and outdoor catering services; (ii) whether pre-deposit was required in respect of credit availed on invoices issued by unregistered vendors.

Issue (i): whether pre-deposit was required in respect of Cenvat credit taken on rent-a-cab and outdoor catering services.

Analysis: The credit on rent-a-cab services was treated as settled by existing tribunal precedent. Credit on outdoor catering services was also treated as allowable under the binding High Court decision on the subject. The adjudicating authority had accepted the principle of eligibility but denied relief only for want of documentary proof that no amount had been recovered from employees. In the absence of material creating doubt about the applicant's assertion, further pre-deposit on these items was not warranted.

Conclusion: No pre-deposit was directed on these two issues.

Issue (ii): whether pre-deposit was required in respect of credit availed on invoices issued by unregistered vendors.

Analysis: The explanation offered for credit taken on invoices raised by unregistered service providers was not found satisfactory. On that limited component, the applicant failed to make out a case for waiver of pre-deposit.

Conclusion: Pre-deposit of Rs. 1,82,432 was directed for this issue.

Final Conclusion: The applications were disposed of by granting waiver of the balance dues and stay on recovery, while requiring deposit only of the amount relatable to invoices issued by unregistered vendors.

Ratio Decidendi: Waiver of pre-deposit may be granted where the claim of eligibility is supported by settled precedent and is not contradicted by material evidence, but relief may be declined for a component where the explanation for credit entitlement is not satisfactorily established.

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