CENVAT credit on rent-a-cab services for employee transport supported waiver of pre-deposit and stay of recovery at the stay stage.

At the stay stage, CENVAT credit on service tax paid for rent-a-cab services used to transport employees was treated as prima facie supported by earlier Tribunal decisions on employee transportation and related logistical support. On that basis, the assessee was granted waiver of pre-deposit and recovery was stayed until disposal of the appeal.

---

---

Issues: Whether the assessee was entitled, at the stay stage, to waiver of pre-deposit and stay of recovery in relation to CENVAT credit of service tax paid on rent-a-cab services used for transporting employees.

Analysis: The issue was treated as prima facie covered by earlier Tribunal decisions on employee transportation/logistical support and the availability of CENVAT credit on the associated service tax.

Outcome: Waiver of pre-deposit was granted and recovery was stayed until disposal of the appeal. The appeal was directed to be listed before the Single Member Bench in due course.

---