Input tax credit on facility charges: pre-deposit waived and adjudication stayed pending appeal

Input tax credit on fixed facility charges paid to a gas supplier for installation and operation of a facilitation centre was treated as prima facie disallowable for purposes of interim relief. On the assessee's request, CESTAT Kolkata waived the pre-deposit in full and stayed further proceedings under the adjudication order pending disposal of the appeal. The matter therefore remained open for final determination in appeal, with no immediate recovery action required during the stay period.

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Issues: Whether input credit taken in respect of fixed facility charges paid to a gas supplier for installation and operation of a facilitation centre within the assessee's was prima facie disallowable, and whether the assessee was entitled to waiver of pre-deposit and stay pending appeal.

Outcome: The pre-deposit was waived in full and further proceedings pursuant to the adjudication order were stayed pending disposal of the appeal.

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