Abatement under service tax notification supported waiver of pre-deposit, with recovery stayed pending appeal.

The Tribunal held that a prima facie case existed for waiver of pre-deposit where the appellant claimed abatement under the relevant service tax notification. It found support in prior Tribunal authority and noted that the recipient of goods transport agency service could not have taken credit of capital goods or inputs. The absence of an endorsement on the consignment notes regarding non-availment of credit was not treated as defeating the appellant's claim at the interim stage. Waiver of pre-deposit was therefore granted and recovery of the demanded service tax, interest and penalties was stayed pending disposal of the appeal.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit of the service tax, interest and penalties demanded, in view of the claim for abatement under the relevant notification.

Analysis: The demand had been denied on the ground that the consignment notes did not contain an endorsement regarding non-availment of credit. The Tribunal noted that the recipient of goods transport agency services could not have taken credit of capital goods or inputs and found support for the appellant's contention in prior Tribunal authority treating the issue in the appellant's favour.

Outcome: Waiver of pre-deposit was granted and recovery of the amounts confirmed by the lower authorities was stayed pending disposal of the appeal.

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