Pre-deposit waiver in service tax dispute granted where full tax deposit was already made and classification awaited final hearing.

In a service tax dispute concerning purchase and sale activities claimed to fall under Business Auxiliary Service, the tribunal treated the taxability and classification issue as fit for determination at final hearing. As the entire service tax demand had already been deposited, it considered further pre-deposit of the balance amount unnecessary at that stage and granted waiver of the balance pre-deposit. Recovery was stayed until disposal of the appeal.

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Issues: Whether waiver of pre-deposit of the balance amounts and stay of recovery should be granted in a service tax dispute concerning liability on purchase and sale activities claimed to fall under Business Auxiliary Service.

Analysis: The entire service tax amount had already been deposited. The disputed issue on the taxability of the activity and its classification was found fit for examination at the time of final hearing. In view of the existing deposit, the balance pre-deposit requirement was considered unnecessary at that stage.

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

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