Pre-deposit waiver in service tax dispute granted where tax, interest and penalties were already deposited

Waiver of pre-deposit was granted in a service tax dispute involving alleged business auxiliary service, because the appellant asserted no intent to evade tax and stated that the service tax, interest and penalties had already been deposited. On that basis, the request for interim relief was accepted, and recovery of the service tax, interest and penalties was stayed during pendency of the appeal.

---

---

Issues: Whether the appellant was entitled to waiver of pre-deposit of service tax, interest and penalties and stay of recovery during pendency of the appeal.

Analysis: The dispute concerned penalties and tax demand arising from services alleged to fall within the business auxiliary service category. The appellant asserted absence of any intention to evade tax and also pointed out that the service tax, interest and penalties had already been deposited. On that basis, the request for pre-deposit relief was examined and found deserving of acceptance.

Conclusion: Waiver of pre-deposit was granted and recovery of the service tax, interest and penalties was stayed during the pendency of the appeal.

---