Tour operator classification dispute: prima facie merits and limitation justified waiver of pre-deposit and stay of recovery.

A service tax dispute on tour operator classification turned on whether the appellant had shown a prima facie case for waiver of pre-deposit and interim relief on limitation. The CESTAT recorded prima facie support for the appellant on both merits and limitation, noting the distinction between periods before and after 10-9-2004 and the contention that the appellant was only operating point-to-point buses rather than arranging tours. On that basis, the requirement to pre-deposit duty and penalties was dispensed with and recovery was stayed during pendency of the appeal.

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Issues: Whether the appellant had made out a prima facie case for waiver of pre-deposit in a service tax dispute concerning classification as a tour operator, and whether the plea of limitation also warranted relief at the interim stage.

Analysis: The order recorded prima facie force in the appellant's submissions both on merits and on limitation. It noted the distinction between the period prior to and after 10-9-2004, and also considered the contention that the appellant was merely operating buses point to point and was not arranging tours.

Outcome: The condition of pre-deposit of duty and penalties was dispensed with and recovery was stayed during pendency of the appeal.

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