Pre-deposit waiver in service tax stay matters requires a strong prima facie case; partial deposit and recovery stay may follow.

Complete waiver of pre-deposit in a service tax stay matter was refused because the appellant did not establish a strong prima facie case on the full demand. The belated payment demand had already been discharged, the road construction demand raised an exemption issue, and the subcontracting demand showed some prima facie support from the principal contractor's payment, but the remaining demands lacked documentary substantiation. On the available material, only partial interim relief was justified, so a reduced pre-deposit was ordered and recovery of the balance adjudged dues was stayed pending the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of the entire adjudged tax, interest and penalty in a service tax dispute involving multiple demands.

Analysis: The demand relating to belated payment had already been deposited. In respect of the demand concerning road construction for a Government of India undertaking, the exemption notification for construction of public roads was relevant. For the demand relating to subcontracted construction work, the appellant's case that tax had already been paid by the principal contractor created some prima facie support, though the liability was stated to be on the appellant. Other demands were unsupported by documentary evidence or verification material. On the overall material, a prima facie case for complete waiver was not made out.

Conclusion: Complete waiver of pre-deposit was declined. The appellant was directed to deposit a reduced amount, and recovery of the balance adjudged dues was stayed during pendency of the appeal.

Final Conclusion: Interim relief was granted only in part, with conditional pre-deposit of a lesser sum and protection against recovery of the remaining demand pending appeal.

Ratio Decidendi: In stay matters, complete waiver of pre-deposit depends on the existence of a strong prima facie case and supporting material; absent that, the adjudicating forum may require a partial deposit while staying recovery of the balance.

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