Waiver of pre-deposit in service tax penalty appeals was justified by prior tax payment and absence of mala fide intent.

Waiver of pre-deposit and stay of recovery were granted in service tax penalty appeals where the entire service tax liability had already been paid before the order-in-original and the adjudicating authority had recorded no mala fide intent to evade payment. Those facts were treated as establishing a strong prima facie case for interim protection, and the same reasoning was applied in the companion matter. Recovery of the disputed amounts was stayed pending disposal of the appeals.

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Issues: Whether waiver of pre-deposit and stay of recovery should be granted in appeals involving penalties under the service tax law.

Analysis: The entire service tax amount had been paid before the order-in-original, and the adjudicating authority had recorded that there was no mala fide intention to evade payment. In the companion matter, the same facts and reasoning were treated as applicable. On that basis, the appellants were found to have made out a strong prima facie case for interim protection.

Outcome: Waiver of pre-deposit was granted and recovery of the disputed amounts was stayed till disposal of the appeals.

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