SSI exemption and CENVAT credit issues supported waiver of predeposit and interim stay in service tax dispute.

In a service tax dispute over SSI exemption, the tribunal considered waiver of predeposit and stay of recovery on a prima facie basis. It noted that substantial payment had already been made and that, at the interim stage, non-availment of CENVAT credit was not treated as conclusively established against the exemption claim. The appellant's plea of bona fide belief was also treated as relevant for interim consideration. On those facts, the deposited amount was regarded as sufficient security, and the balance predeposit was waived with recovery stayed during the pendency of the appeal.

---

---

Issues: Whether the appellant was entitled to waiver of predeposit and stay against recovery in a service tax dispute involving claim of SSI exemption and the relevance of non-availment of CENVAT credit.

Analysis: The appellant had deposited a substantial part of the demand. The claim for SSI exemption required examination, and at the prima facie stage the question whether non-availment of CENVAT credit had to be proved was not treated as conclusive. The plea of bona fide belief was also found relevant for consideration. On the facts, the deposited amount was treated as sufficient for interim protection during pendency of the appeal.

Conclusion: Waiver of predeposit of the balance dues was granted and recovery was stayed during the pendency of the appeal.

---