Cenvat credit on residential colony services was held arguable on a prima facie basis, so stay was refused.

Cenvat credit on services used in a manufacturer's residential colony, including repairs and maintenance, civil construction, manpower recruitment and clearing services, was found to raise an arguable question because an earlier decision had treated repairs and maintenance of the colony as input services. On a prima facie view, the disputed services could also qualify as input services. The Tribunal therefore declined to grant stay of the Commissioner (Appeals) order allowing the credit.

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Issues: Whether the Revenue had made out a case for stay of the Commissioner (Appeals) order allowing Cenvat credit on services used in the residential colony of the manufacturer, including repairs and maintenance, civil construction, manpower recruitment and clearing services.

Analysis: The Tribunal noted that in an earlier decision repairs and maintenance of the residential colony had been treated as input services. On that basis, it held that the present claim was arguable and that, on a prima facie view, the disputed services could also fall within input services.

Outcome: The application seeking stay of the Commissioner (Appeals) order was rejected.

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