Prima facie case for classification failed; tribunal granted only partial predeposit relief and stayed recovery pending appeal.

The assessee's own description of its activities, including telephone-related charges, supported a classification as infrastructural support services, so it failed to establish a prima facie case for total dispensation of predeposit at the interim stage. The tribunal therefore declined full waiver of the service tax, cess, interest and penalty demand, but granted partial relief by ordering a deposit of Rs. 2,50,000 within four weeks, waiving the balance and staying recovery pending the appeal.

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Issues: Whether waiver of predeposit of service tax, educational cess, higher education cess, interest and penalty was warranted at the interim stage, and whether the assessee had made out a prima facie case that its services fell within the claimed classification.

Analysis: The assessee's own description of the activities, including services such as telephone charges, indicated provision of infrastructural support services. On that basis, the claim for full waiver was not accepted at the interim stage, and the assessee was found not to have established a prima facie case for total dispensation of predeposit.

Outcome: Partial predeposit relief was granted by directing deposit of Rs. 2,50,000 within four weeks, with waiver of the balance, including recovery stayed pending the appeal.

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