Pre-deposit waiver in service tax abatement dispute limited where consignment note declarations were unverified

Entitlement to abatement under Notification No. 32/04-ST turned on whether the goods transport agency consignment notes carried the prescribed declarations and whether those declarations could be verified. The adjudicating authority had already extended the exemption where the required particulars were established and retained the demand only for the balance where consignment notes were not produced. On that basis, the Tribunal found no case for complete waiver of pre-deposit and noted that financial hardship was not shown. It directed a partial pre-deposit and granted waiver of the balance and stay of recovery upon compliance.

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Issues: Whether waiver of the entire pre-deposit of service tax, interest and penalty was warranted in an appeal arising from denial of abatement under Notification No. 32/04-ST dated 03.12.2004.

Analysis: The claim for complete waiver depended on the availability and verification of consignment notes containing the prescribed declarations for the goods transport agency service. The record showed that the adjudicating authority had already allowed the exemption benefit wherever the required declaration was verified and had sustained the demand only for the balance amount where the necessary consignment notes were not produced. In these circumstances, the case was not fit for total waiver, and no financial hardship was shown.

Conclusion: The appellant was directed to deposit Rs. 2 lakh within eight weeks, and on such deposit, waiver of the remaining pre-deposit and stay of recovery were granted.

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