Pre-deposit waiver and stay of recovery granted where substantial deposits were already made against a service tax demand.

Waiver of balance pre-deposit was granted where the appellants had already made substantial deposits toward the service tax demand through cash and Cenvat credit. The stay application was considered in light of the pending challenge on merits, including the treatment of GTA service tax in the Cenvat credit account and the claim to abatement of freight charges under the relevant notification. On that basis, the deposited amounts were treated as sufficient pre-deposit, and recovery of the remaining duty, interest and penalties was stayed until disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery pending appeal in respect of the demanded service tax, interest and penalties.

Analysis: The appeal challenged the demand on merits, including the treatment of GTA service tax in the Cenvat credit account and the claim to abatement of freight charges under the relevant notification. The amount already deposited by cash and through Cenvat credit was substantial, and the remaining liability was considered in the context of the pending appeal.

Conclusion: The amounts already deposited were treated as sufficient pre-deposit. Waiver of the balance pre-deposit was granted and recovery of the remaining duty and penalties was stayed till disposal of the appeal.

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