Input service credit for job-worker premises upheld on a prima facie basis, with stay of recovery granted.

Services used at a job-worker's premises were treated as input services because they were utilised in or in relation to the manufacture of intermediate excisable goods, and the claimant bore the service tax incidence. Rule 2(l) of the CENVAT Credit Rules, 2004 was applied broadly to cover services used directly or indirectly in connection with manufacture, with parity drawn from the allowance of similar credit for services used in the appellant's own factory. On that basis, the appellant established a prima facie case for admissibility of CENVAT credit, and unconditional waiver of pre-deposit with stay of recovery was granted.

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Issues: Whether CENVAT credit of service tax paid on services availed at the job-worker's premises was admissible, and whether the appellant had made out a prima facie case for waiver of pre-deposit and stay of recovery.

Analysis: The services were used at the job-worker's premises in or in relation to the manufacture of intermediate excisable goods, and the appellant bore the service tax incidence. Rule 2(l) of the CENVAT Credit Rules, 2004 gives a wide meaning to input services, covering services used directly or indirectly in relation to manufacture of final products. The fact that similar credit was allowed when the services were used in the appellant's own factory further supported parity of treatment.

Conclusion: The appellant was entitled to a prima facie view in its favour on admissibility of credit, and unconditional waiver of pre-deposit with stay of recovery was granted.

Final Conclusion: The proceedings were kept in abeyance during the pendency of the appeal, with no pre-deposit required at the interim stage.

Ratio Decidendi: Services used in relation to manufacture at a job-worker's premises can qualify as input services where they are integrally connected with manufacture and the tax burden has been borne by the claimant.

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