Pre-deposit in service tax penalty stay matter: partial waiver allowed, but Section 77 penalty had to be paid first.

In a stay application concerning penalties for delayed payment of service tax and late filing of ST-3 returns, the Tribunal considered the applicant's plea of bona fide belief and first-time registration but found no basis for complete waiver of pre-deposit. As the penalty under Section 77 had not been deposited, partial compliance was required before relief could continue. The applicant was directed to pre-deposit the Section 77 penalty of Rs. 2,000 within the stipulated time, and the balance penalty was stayed pending disposal of the appeal on compliance.

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Issues: Whether, in a stay application against penalties imposed for delayed payment of service tax and delayed filing of ST-3 returns, partial waiver of pre-deposit was warranted.

Analysis: The applicant pleaded bona fide belief and first-time registration under service tax as the reason for default. On examination of the record, the order noted that the penalty under Section 77 had not been deposited and found no basis to grant complete stay without compliance.

Outcome: The applicant was directed to pre-deposit the penalty amount of Rs. 2,000/- under Section 77 within the stipulated time, and the balance penalty was stayed pending disposal of the appeal on compliance.

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