Co-loader activity and extended limitation justified a substantial pre-deposit, with recovery of the balance stayed pending appeal.

At the stay stage, co-loader activity was treated as prima facie taxable under Business Auxiliary Service after the 10.9.2004 amendment, and suppression of relevant facts justified invocation of the extended period. The Tribunal also noted the contention that service tax had already been paid under Business Support Service for part of the period. Balancing these factors, it ordered a substantial pre-deposit and stayed recovery of the balance demand pending disposal of the appeal.

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Issues: Whether the applicant was required to make pre-deposit of the demanded service tax on a prima facie view that the co-loader activity fell under Business Auxiliary Service, and whether any relief could be granted in view of the plea of tax already paid under Business Support Service for part of the period.

Analysis: The Tribunal found, at the stay stage, that the applicant's co-loader activity was prima facie taxable as Business Auxiliary Service after the amendment effective from 10.9.2004 and that suppression of relevant details justified invocation of the extended period. At the same time, it took note of the submission that service tax had already been paid under Business Support Service for May and June 2006. Balancing these factors, the Tribunal considered a substantial pre-deposit appropriate and waived recovery of the balance during the appeal.

Conclusion: Partial relief was granted by directing a pre-deposit of Rs. 25 lakhs and staying recovery of the balance demand pending disposal of the appeal.

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