Cenvat credit on debit notes supported by tax-paid services, with only excess credit requiring limited reversal.

Cenvat credit taken on debit notes was supported by documents showing the service tax liability, the service provider's registration details, and payment of tax to the provider, so waiver of pre-deposit was granted for the balance demand and recovery was stayed pending appeal. However, one instance of excess credit of Rs. 12,629 was identified, and reversal of that limited amount was required as a condition for relief.

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Issues: Whether the appellant was entitled to waiver of pre-deposit in respect of the demand arising from Cenvat credit taken on debit notes and whether a limited reversal was warranted.

Analysis: The documents relied upon showed the service tax liability and the service provider's registration details. The services were received and tax had been paid to the service provider. However, one instance of excess credit of Rs. 12,629 was noticed and required reversal.

Outcome: Waiver of pre-deposit was granted for the balance amount and recovery was stayed till disposal of the appeal, subject to reversal of Rs. 12,629.

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