Pre-deposit waiver in service tax dispute granted after prior deposit was found sufficient for hearing the appeal.

The interim dispute concerned waiver of pre-deposit and stay of recovery in a service tax matter. The appellant argued that part of the demand for the period before 10.09.2004 was covered by an existing Tribunal ruling, that it acted only as a booking agent for outstation travel agents, and that some amounts were mere reimbursements. The Tribunal noted that the appellant had already deposited Rs. 9,29,565 during investigation and treated that payment as sufficient for hearing the appeal. On that basis, the balance pre-deposit was waived and recovery of the remaining demand was stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of the balance service tax demand, interest and penalties and stay of recovery pending disposal of the appeal.

Analysis: The appellant had raised a prima facie contention that part of the demand for the period prior to 10.09.2004 may be covered by the Tribunal decision relied upon, and that it had consistently claimed to be acting as a booking agent for outstation travel agents. The demand was also contested on the footing that certain amounts represented actual reimbursements. The Tribunal found that the appellant had already deposited Rs. 9,29,565/- during investigation and that this amount was sufficient for hearing and disposal of the appeal. On that basis, the balance pre-deposit requirement was considered unnecessary at the interim stage.

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

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