Pre-deposit waiver for transport service tax dispute where truck owners were prima facie not liable as goods transport agencies.

Waiver of pre-deposit was allowed where service tax demands arose from denial of abatement under Notification No. 32/04-S.T. for certain transporters on the ground that declarations of non-availment of CENVAT credit and Notification No. 12/03-S.T. benefit were not produced. The applicants argued that the service providers were only truck owners and not goods transport agencies, so they were not liable to service tax or registration. Finding prima facie force in that submission and noting the absence of any finding that the transport providers were registered or proceeded against for non-registration or non-payment, the Tribunal stayed recovery of tax, interest and penalties pending the appeals.

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Issues: Whether waiver of pre-deposit of service tax, interest and penalties was warranted and recovery should be stayed during the pendency of the appeals.

Analysis: The demand arose from denial of abatement under Notification No. 32/04-S.T. on the ground that declarations regarding non-availment of CENVAT credit and non-availment of the benefit of Notification No. 12/03-S.T. had not been produced in respect of certain transporters. The applicants contended that the service providers were only truck owners and not goods transport agencies, and therefore were not liable to service tax or registration. The Tribunal found prima facie force in this submission, noting the absence of any finding that the transport providers were registered or that proceedings had been taken against them for non-registration or non-payment of service tax.

Conclusion: Waiver of pre-deposit was granted and recovery of the tax, interest and penalties was stayed pending disposal of the appeals.

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