Business auxiliary service in retail finance promotion led to partial pre-deposit waiver, not full relief.

The Tribunal considered whether activity of promoting retail finance for a bank fell within business auxiliary service at the pre-deposit stage and whether full waiver of service tax and penalties was justified. It noted the agreement to promote retail finance and to introduce customers to the bank, which brought the matter within the scope relevant to pre-deposit, but not to the extent of granting complete waiver. The Tribunal accordingly required deposit of 50 per cent of the demanded amount within four weeks and waived pre-deposit of the balance for hearing of the appeal.

---

---

Issues: Whether the applicant was entitled to total waiver of pre-deposit of service tax and penalties, and whether the activity of promoting retail finance for the bank was covered by business auxiliary service for the purpose of the pre-deposit application.

Analysis: The applicant sought waiver on the ground that liability arose only from the date when such activity was specifically covered under business auxiliary service, while the Revenue maintained that introducing customers to the bank for retail finance amounted to promoting the client's services. The Tribunal found that the agreement with the bank to promote retail finance brought the case within the scope relevant for the pre-deposit stage, but not so as to justify complete waiver.

Outcome: The Tribunal directed deposit of 50 per cent of the demanded amount within four weeks and waived pre-deposit of the balance for hearing of the appeal.

---