Tour operators service demand: no complete waiver of pre-deposit where records supported contract carriage use and partial tax liability was admitted.

On an application for waiver of pre-deposit in a demand raised under tour operators service, the CESTAT found no prima facie case for complete relief. The appellant's passenger transport between Pune and Mumbai airports was carried out using hired buses; the record showed that at least one bus had a tourist permit for part of the disputed period, and the appellant's own statement supported the Revenue's case that the vehicles operated as contract carriages. The appellant also admitted tax liability for part of the demand and had paid service tax for one year. Complete waiver was refused, and only a partial pre-deposit was directed with stay of recovery limited accordingly.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of the demand raised under the head of tour operators service.

Analysis: The appellant was engaged in transporting passengers between Pune and Mumbai Airports using hired buses. The records indicated that at least one bus used by the appellant was covered by a tourist permit for part of the disputed period, and the appellant's own statement supported the Revenue's case that the vehicles operated under a contract carriage arrangement. The appellant had also admitted tax liability for a portion of the demand and had paid some service tax for one year. In these circumstances, the cited decisions were treated as not assisting the appellant for the present stay application.

Conclusion: The appellant was not entitled to complete waiver of pre-deposit. A partial pre-deposit was directed, and stay of recovery was granted only to the limited extent implicit in that direction.

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