Input service nexus for coaching business justified waiver of pre-deposit and stay of recovery

Services of catering, photography, hall renting and repair and maintenance of motor vehicles were treated as prima facie having nexus with the assessee's commercial coaching and training business, so they appeared to fall within the scope of input service under Rule 2(l) of the Cenvat Credit Rules. On that basis, the Tribunal granted stay relief and waived the requirement of pre-deposit of Cenvat credit, interest and penalty pending disposal of the appeal.

---

---

Issues: Whether the services of catering, photography, renting of halls and repair and maintenance of motor vehicles used in the assessee's commercial coaching and training business were prima facie covered by the definition of input service, so as to justify waiver of pre-deposit and stay of recovery.

Analysis: The use of the services was not disputed. The Tribunal formed a prima facie view that these services had nexus with the appellant's business of providing commercial coaching and training and therefore appeared to fall within the scope of input service under Rule 2(l) of the Cenvat Credit Rules. On that basis, the Tribunal found the appellant entitled to relief at the stage of stay.

Conclusion: The requirement of pre-deposit of Cenvat credit, interest and penalty was waived and recovery was stayed pending disposal of the appeal.

---