Input service credit dispute fails at stay stage, with pre-deposit directed and waiver refused.

At the stay stage, the Tribunal found no prima facie case for waiver of pre-deposit against service tax demand based on credit availed on tax allegedly paid by cable operators. It noted the appellant's revenue-neutrality argument but held that credit of service tax paid by the recipient of service as input service was not permissible on the material before it. As no sufficient basis for waiver was shown, the appellant was directed to deposit the disputed amount within eight weeks and the stay petition was dismissed.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit in respect of service tax demand based on credit availed on service tax allegedly paid by cable operators as input service.

Analysis: The appellant, a multi system operator, claimed credit of service tax paid by cable operators and contended that the matter was revenue neutral. The Tribunal held, at the stage of stay, that credit of service tax paid by the recipient of service as input service was not permissible and that the appellant had not shown any force in support of waiver.

Outcome: The appellant was directed to deposit the disputed amount within eight weeks and the stay petition was dismissed.

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