Pre-deposit waiver in tour operator dispute limited to conditional relief where prima facie record supported the Revenue view.

Prima facie material showed that the vehicle was used to transport employees between Bhopal and Mandideep, and the Tribunal considered the statutory definition of "tour" and the permit framework for tourist vehicles under the motor vehicle rules. On that record, the Revenue's view that the appellant was operating as a tour operator was treated as sustainable at the interim stage, so complete waiver of pre-deposit was not justified. The Tribunal therefore declined total waiver of service tax and penalty, but granted interim protection conditionally on deposit of 50% of the service tax, with waiver of the balance on compliance.

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Issues: Whether the appellant had made out a case for total waiver of pre-deposit of service tax and penalty, and whether interim protection could be granted on a partial deposit.

Analysis: The application was considered in the light of the statutory definition of "tour" under Section 65(115) of the Finance Act, 1994 and the material showing that the vehicle was engaged for transporting employees between Bhopal and Mandideep. Reference was also made to the permit structure under the Central Motor Vehicles Rules, 1989, including the relevance of Form No. 47 and the provisions governing tourist vehicles. On the available record, it was not clear that the vehicle answered the specifications of an authorised tourist vehicle, and the authorities' view that the appellant was operating as a tour operator was treated as prima facie sustainable. In that background, the Tribunal found no basis for complete waiver of pre-deposit.

Conclusion: Total waiver of pre-deposit was declined, and interim stay was granted subject to deposit of 50% of the service tax and waiver of the balance amount of service tax and penalty on compliance.

Final Conclusion: The appellant obtained only partial interim relief, while the demand was kept alive pending compliance with the ordered deposit.

Ratio Decidendi: Where the available record prima facie supports the revenue's view that the assessee is a tour operator, complete waiver of pre-deposit is not justified and conditional interim protection may be granted instead.

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