Prima facie exemption required for full pre-deposit waiver; partial relief granted where recognised-course claim was not established.

For complete waiver of pre-deposit in a service tax dispute, the appellant had to show a strong prima facie entitlement to the claimed exemption for recognised courses. The Tribunal held that the training activity had been treated as commercial training and that the exemption plea under the notification regime was not sufficiently established at the interim stage. Complete waiver was therefore refused, and only partial relief was granted subject to a directed pre-deposit, with the balance of duty and penalties stayed on compliance.

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Issues: Whether the appellant had made out a case for complete waiver of pre-deposit in respect of the service tax demand and penalties by relying on the exemption notifications applicable to recognized courses.

Analysis: The appellant's training activity was treated by the department as commercial training. The exemption claimed depended on whether the course was a recognized course under law in force in India. The Tribunal found that the appellant had not established a strong prima facie case on that aspect and that the notification-based exemption plea did not warrant full waiver at the interim stage.

Conclusion: Complete waiver was declined. The appellant was directed to pre-deposit Rs. 30,000, with waiver of the balance of duty and penalties and stay of recovery upon compliance.

Final Conclusion: Interim relief was granted only in part, and the appeal was kept pending subject to compliance with the ordered deposit.

Ratio Decidendi: A prima facie entitlement to exemption must be shown to justify full waiver of pre-deposit; failing that, only partial waiver may be granted pending disposal of the appeal.

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