Pre-deposit waiver in abatement dispute denied where Cenvat credit use required detailed examination and the issue was debatable.

At the stay stage in a dispute over denial of abatement under Notification No. 1/2006-ST, the tribunal found that the appellant's claim that Cenvat credit was taken only for some sites, while abatement was claimed only for sites without such credit, required detailed examination. The notification was viewed prima facie as applicable to the service provider as such rather than on a contract-wise basis, making the dispute debatable on the available record. Complete waiver of pre-deposit was therefore not justified, and partial pre-deposit was directed with recovery of the balance stayed on compliance.

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Issues: Whether the appellant was, at the stay stage, entitled to complete waiver of pre-deposit in a dispute concerning denial of abatement under Notification No. 1/2006-ST on the allegation that Cenvat credit had been availed on inputs or input services.

Analysis: The appellant claimed that Cenvat credit was taken only for some sites and that abatement was claimed only for sites where no such credit was availed. The notification was viewed, prima facie, as applicable to the service provider as such and not on a contract-wise basis. The dispute was held to be debatable and requiring detailed examination, so complete waiver was not justified at that stage.

Conclusion: Complete waiver of pre-deposit was declined and partial pre-deposit was directed, with recovery of the balance stayed on compliance.

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