CENVAT credit on mobile phone services requires proof of use in manufacture; limitation plea may await regular hearing.

Credit on service tax paid for mobile phone services was treated as unsupported where the record contained no evidence that the services were used in or in relation to manufacture, so full waiver of pre-deposit was not justified on that issue. The plea of limitation was considered a mixed question of law and fact and was therefore deferred to regular hearing rather than decided at the waiver stage. The applicant was required to deposit the duty amount, and on such deposit, waiver of pre-deposit of penalty was granted.

---

---

Issues: Whether the applicant was entitled to full waiver of pre-deposit in a dispute involving denial of credit on service tax paid on mobile phone, and whether the plea of limitation could be decided at the stage of waiver application.

Analysis: The applicant's entitlement to credit was treated as unsupported on the existing record because no evidence had been produced to show that the mobile phone services were used in or in relation to manufacture. The plea of time bar was regarded as involving a mixed question of law and fact, suitable for consideration at the stage of regular hearing.

Outcome: The applicant was directed to deposit the duty amount of Rs. 11,706 within four weeks, and upon such deposit, waiver of pre-deposit of penalty was granted.

---