Retrospective exemption for power distribution services supported waiver of pre-deposit and interim stay against recovery.

Services relating to distribution and transmission of power were treated as prima facie covered by Notification No. 45/2010-S.T., which extended the exemption retrospectively from 16-6-2005. On that basis, the tribunal considered the demand and denial of Cenvat credit sufficient to justify interim protection and did not insist on pre-deposit. Waiver of pre-deposit was granted, and recovery was stayed during pendency of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in view of the exemption granted for services relating to distribution and transmission of power.

Analysis: The dispute at the interim stage was whether the demand and denial of Cenvat credit required insistence on pre-deposit. Notification No. 45/2010-S.T., dated 20-7-2010 was noted as extending exemption, with effect from 16-6-2005, to services relating to distribution and transmission of power. On that prima facie view, the case was treated as covered by the exemption notification, making pre-deposit unnecessary.

Conclusion: Waiver of pre-deposit was granted and stay against recovery was ordered during the pendency of the appeal.

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