Pre-deposit relief in CENVAT credit disputes turns on a prima facie case under the input service rules and factual support.

Waiver of pre-deposit in a CENVAT credit dispute depends on a credible prima facie case under the applicable input service definition and supporting facts, including whether goods were delivered at the customers' premises so that the place of removal could be treated as the customer's place. On the facts noted, there was no material to establish that basis, and the contrary precedent was treated as inapplicable. Limited interim relief was therefore granted: partial pre-deposit was ordered, the balance demand was waived for the time being, and recovery was stayed pending disposal of the appeals. The limitation plea was left open for consideration at the final hearing.

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Issues: Whether the applicant was entitled to waiver of pre-deposit in respect of the demand of CENVAT credit on GTA service for the disputed period.

Analysis: The dispute concerned availment of CENVAT credit on goods transport agency service after the amendment to the definition of input service under Rule 2(1) of the CENVAT Credit Rules, 2004. The Tribunal found no material to show that the goods were delivered at the customers' premises so as to support the plea that the place of removal was the customer's place. The reliance placed on the contrary decision was found inapplicable on the facts. The plea of limitation was not adjudicated finally and was kept open for consideration at the hearing of the appeals.

Conclusion: The applicant was directed to predeposit Rs. 4,00,000 within six weeks, and on such deposit the balance demand stood waived and recovery stayed during pendency of the appeals.

Final Conclusion: Interim relief was granted only to a limited extent, with a conditional stay of recovery of the balance amount pending disposal of the appeals.

Ratio Decidendi: For grant of waiver of pre-deposit in a CENVAT credit dispute, the applicant must show a credible prima facie basis for the claim on the applicable input service definition and relevant factual foundation such as the place of removal.

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