Pre-deposit relief in service tax dispute: complete waiver refused, but partial deposit and stay of balance recovery granted.

Complete waiver of pre-deposit was declined in a service tax dispute because the appellant's plea of bona fide belief and limitation was not accepted at the interim stage, and reliance on an earlier stay order was distinguished. Prima facie, the Tribunal accepted that 67% abatement under Notification No. 1/2006-S.T. was available, and balanced the rival positions by directing a partial pre-deposit. On compliance with that deposit, recovery of the balance dues was stayed, giving the appellant conditional interim protection rather than full waiver.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit and stay of recovery in the service tax dispute.

Analysis: The appellant's plea of bona fide belief and time bar was found not acceptable at the interim stage. The claimed support from an earlier stay order was distinguished. At the same time, the claim for 67% abatement under Notification No. 1/2006-S.T dated 1.3.2006 was held to be prima facie available. Considering the overall facts, the Tribunal balanced the rival contentions by directing a partial pre-deposit and granting protection against recovery of the balance on compliance.

Conclusion: Complete waiver was declined, but conditional interim relief was granted by directing a further deposit of Rs. 10,00,000 and staying recovery of the balance dues on compliance.

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