Cenvat credit on security services supports waiver of pre-deposit when invoices show tax charged despite supplier non-payment.

Cenvat credit on security services was treated as prima facie available where the appellant had paid the invoiced charges and the invoices showed service tax charged to it. The service provider's failure to deposit the tax with the Government was not considered a ground, at the interim stage, to deny the appellant credit or to refuse relief. On that basis, a prima facie case was found for waiver of pre-deposit and for stay of recovery pending disposal of the appeal.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted where Cenvat credit of service tax paid on security services was availed and the service provider had not discharged the tax.

Analysis: The appellant had paid the charges raised by the security provider and the invoices reflected service tax charged to the appellant. The failure of the service provider to deposit service tax with the Government was held not to be a circumstance that could, at the prima facie stage, be used against the appellant for availing credit. On that basis, a prima facie case for relief was found.

Outcome: Waiver of pre-deposit was granted and recovery of the disputed amount was stayed till disposal of the appeal.

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