Cenvat credit utilisation for section 66A service tax sustained, with full waiver of pre-deposit granted pending appeal.

Service tax liability on services covered by section 66A was examined against the definition of output services for a period before 01.03.2008, when the exclusion of GTA services was not yet in force. On that basis, the text states that no corresponding exclusion was shown for the remaining section 66A services, and that the liability had been discharged through accumulated Cenvat credit. The matter is described as involving a strong prima facie case with no revenue loss, resulting in full waiver of pre-deposit pending disposal of the appeal.

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Issues: Whether the appellants were required to make pre-deposit of the service tax and interest demanded, and whether the service tax liability on the services covered by section 66A could be discharged through accumulated Cenvat credit in the light of the definition of output services.

Analysis: The period in dispute preceded 01.03.2008. The exclusion of GTA services from the scope of output services was introduced only from that date. For the remaining services covered by section 66A, no corresponding exclusion from the definition of output services was shown. The liability had been discharged only through accumulated credit, and the matter disclosed a strong prima facie case with no revenue loss.

Conclusion: The appellants were entitled to full waiver of pre-deposit pending disposal of the appeal.

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