Pre-deposit waiver in service tax dispute declined where consulting engineer classification and time-bar plea lacked a strong prima facie case.

The services rendered were found prima facie to fall within Consulting Engineer Services, and the time-bar plea was not accepted at the interim stage because it required detailed examination. On that basis, the applicant was held not to have made out a strong prima facie case for complete relief from pre-deposit, so full waiver was declined and conditional pre-deposit was directed, with balance waiver and stay of recovery to follow compliance.

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Issues: Whether waiver of pre-deposit and stay of recovery could be granted in respect of the service tax demand, interest and penalties, and whether the applicant had made out a prima facie case on time-bar and merits.

Analysis: The services rendered were found to be prima facie covered by Consulting Engineer Services. The plea of time-bar required detailed examination and was not accepted at the interim stage. Since the Bench was of the prima facie view that the applicant did not have a strong case, conditional pre-deposit was directed.

Conclusion: Waiver of the entire pre-deposit was declined. The applicant was directed to pre-deposit Rs. 5,00,000 within three months, and on compliance the balance pre-deposit stood waived and recovery stayed till disposal of the appeal.

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