Parity-based interim relief: identical dispute and prior unconditional stay justified waiver of pre-deposit and stay of recovery.

Where an identical dispute involving the same assessee had already attracted unconditional stay on a strong prima facie view, the Tribunal extended interim protection on parity. It treated the present matter as indistinguishable from the earlier order, which had accepted a prima facie case on entitlement to service tax credit and the inapplicability of Rule 6(3)(c) where the service activity was regarded as outside the service tax regime. On that basis, waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in view of an earlier stay order passed in an identical matter concerning the same assessee.

Analysis: The appeal involved the same assessee and arose from an identical factual and legal situation. The Tribunal noted that in the earlier stay order, unconditional stay had been granted on the strength of a prima facie view that the assessee had a strong case regarding entitlement to service tax credit and the inapplicability of the restriction under Rule 6(3)(c) where the service activity was treated as outside the purview of the service tax law. Following that earlier view, the Tribunal treated the present matter similarly for purposes of interim relief.

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

Final Conclusion: The appellant obtained full interim protection on the basis of parity with the earlier order in the same line of dispute.

Ratio Decidendi: Where an identical issue involving the same assessee has already been found fit for unconditional stay on a strong prima facie case, interim relief may be extended on parity by granting waiver of pre-deposit and staying recovery.

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