Pre-deposit waiver on service tax abatement dispute where Cenvat credit was reversed and liability was contested.

Total waiver of pre-deposit was granted where the service tax demand had been met by claiming 67% abatement under Notification No. 1/2006-S.T., and the dispute centred on whether that benefit was lost because Cenvat credit had been availed and later reversed. The appellant also relied on the Board's circular dated 29-1-2009 to argue that no liability survived. On this prima facie showing, the pre-deposit of service tax, interest and penalty was waived in full until disposal of the appeal.

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Issues: Whether the appellant was entitled to total waiver of the pre-deposit of service tax, interest and penalty demanded in the impugned order.

Analysis: The demand was stated to have been discharged by availing the 67% abatement under Notification No. 1/2006-S.T. The dispute turned on the Revenue's objection that the benefit of the notification was unavailable because Cenvat credit had been availed, though the credit was later reversed. The appellant also relied on the Board's circular dated 29-1-2009 to contend that no liability survived.

Conclusion: The appellant was granted total waiver of the pre-deposit of the dues demanded in the impugned order till disposal of the appeal.

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