Substantial pre-deposit may justify waiver of further deposit and allow a statutory appeal to be heard on merits.

A substantial pre-deposit of the service tax demand was held sufficient to justify waiver of any further deposit condition for entertaining the statutory appeal. The petitioner, being a statutory body under the A.P. Special Protection Force Act, was not required to deposit the entire tax component again as a condition precedent to hearing, and the appeal was directed to be entertained without further conditions and decided on merits in accordance with law. The ruling reflects that where most of the disputed demand has already been paid, insistence on additional pre-deposit may be unnecessary if the circumstances warrant relief.

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Issues: Whether the petitioner was required to make any further pre-deposit for entertainment of the appeal, despite having already deposited a substantial portion of the service tax demand.

Analysis: The petitioner had already deposited almost the entire service tax liability determined in the order-in-original. In view of this substantial deposit and the petitioner's status as a statutory body established under the A.P. Special Protection Force Act, the insistence on depositing the entire tax component as a condition for hearing the appeal was found unnecessary.

Conclusion: The pre-deposit condition was set aside and the appeal was directed to be entertained without further conditions, with disposal on merits in accordance with law.

Final Conclusion: The writ petition succeeded to the extent of removing the pre-deposit burden and securing consideration of the statutory appeal on merits.

Ratio Decidendi: Where a substantial part of the disputed tax demand has already been deposited, the appellate authority may be directed to entertain the appeal without insisting on further pre-deposit if the circumstances justify such relief.

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