Pre-deposit waiver in service tax dispute accepted where estimated payments were later adjusted and no intent to evade was shown

A public sector undertaking facing a service tax demand was granted waiver of pre-deposit because it had paid tax on estimated receipts where full receipt details were unavailable by the due date, and the shortfall was later adjusted and paid. The record notes occasional excess and short payments arising from estimation, but no suppression or misdeclaration with intent to evade duty was shown. On that basis, the pre-deposit condition was dispensed with and stay was granted unconditionally.

---

---

Issues: Whether waiver of pre-deposit was warranted in a service tax demand where the appellant, a public sector undertaking, had made payments on an estimated basis and no suppression or misdeclaration with intent to evade duty was made out.

Analysis: The order records that the appellant had paid service tax on estimated receipts because complete details of actual receipts were not available by the due date, resulting in occasional excess and short payments which were subsequently adjusted and the differential amount paid. In view of the appellant's status as a public sector undertaking and the absence of suppression or misdeclaration with intent to evade duty, the condition of pre-deposit was dispensed with.

Outcome: Pre-deposit was waived unconditionally and stay was granted.

---