Pre-deposit waiver in service tax dispute where newspaper bundling and transport activity had earlier been held non-taxable.

The appellant's activity of bundling, packing and transporting newspapers was treated as having been earlier held not liable to service tax, and the Department had also taken different views on the applicable taxable category in later proceedings. In light of those conflicting positions, interim relief was granted by waiving the pre-deposit requirement for the service tax, education cess and interest demanded in the impugned order, and recovery was stayed until disposal of the appeal.

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Issues: Whether the appellant was required to pre-deposit the service tax, education cess, and interest demanded in the impugned order pending disposal of the appeal.

Analysis: The order records that the appellant's activity was stated to be bundling, packing, and transport of newspapers, and that an earlier adjudication had held the activity not liable to service tax. It was also noticed that the Department had itself taken different views on the applicable taxable category in subsequent proceedings. On that basis, the Bench found it appropriate to grant interim relief and waive the dues demanded in the impugned order until the appeal was decided.

Conclusion: The pre-deposit requirement was waived and recovery of the demanded amounts was stayed pending disposal of the appeal.

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