Waiver of pre-deposit granted where tax was already paid by the service recipient, with recovery stayed pending appeal.

Pre-deposit of service tax, interest and penalties was waived where the applicant argued that the service recipient had already discharged tax on the same activity. The CESTAT held that, for purposes of the pending appeal, recovery should remain stayed, reflecting prima facie consideration of the duplication-of-tax contention. The operative effect was relief from the upfront deposit requirement and suspension of recovery proceedings until disposal of the appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit of service tax, interest and penalties demanded on the ground that the service recipient had already paid tax on the activity.

Outcome: The requirement of pre-deposit was waived and recovery was stayed during pendency of the appeal.

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