Prima facie nexus test limits Cenvat credit waiver, while a partial stay is granted on disputed dues.

At the pre-deposit stage, the CESTAT assessed only prima facie entitlement to waiver in a dispute over Cenvat credit, interest and penalty. Services such as quality audit, inventory verification, mango pulp testing, verification of sales-generating assets, event management and godown security were found not to show sufficient nexus with manufacture for complete waiver. Coffee vending machine maintenance and factory landscaping were viewed differently, but not enough to justify full relief. The appellants did, however, show a prima facie case on the interest issue based on cited decisions. Complete waiver was declined, and a 10% pre-deposit of the inadmissible credit was directed, with the balance stayed pending the appeals.

---

---

Issues: Whether the appellants had made out a case for complete waiver of pre-deposit and stay of recovery in respect of disputed Cenvat credit, interest and penalty.

Analysis: The dispute at this stage concerned only a prima facie assessment of entitlement to waiver. The services relating to quality audit, inventory verification, mango pulp testing, verification of sales-generating assets, event management and security at the godown were found, on a prima facie view, not to establish sufficient nexus with the manufacture of the appellants' own final product for the purpose of complete waiver. The service relating to maintenance of coffee vending machines and landscaping in the factory was viewed differently, but that did not justify full waiver of the disputed amounts. On the interest issue, the appellants had a prima facie case based on the cited decisions.

Conclusion: Complete waiver was declined. The appellants were directed to make a pre-deposit of 10% of the inadmissible Cenvat credit, after which the remaining dues would stand waived and recovery would remain stayed pending hearing of the appeals.

---