Warranty-period free services: pre-deposit waived and unconditional stay granted on a strong prima facie case.

Free services rendered during the warranty period were treated as covered by an earlier Tribunal ruling on authorised service stations, and this supported a strong prima facie case on taxability. On that basis, pre-deposit of the service tax demand and penalty was waived for the stay application, and unconditional stay was granted. The text reflects that section 35F relief was available where the issue was already considered by precedent and the appellant established a sufficient case against immediate deposit.

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Issues: Whether pre-deposit of the service tax demand and penalty should be waived and stay granted in respect of taxability of free services rendered during the warranty period.

Analysis: The issue was treated as covered by an earlier Tribunal decision dealing with free services provided by authorised service stations. On that basis, the Court found that the appellant had made out a strong prima facie case. In such circumstances, pre-deposit was not required for the purpose of the stay application.

Conclusion: Pre-deposit under section 35F was waived and the stay application was allowed unconditionally.

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