Prima facie case on aircraft training certificates justified waiver of balance pre-deposit in service tax appeal

The Tribunal waived the balance pre-deposit in a service tax appeal because the appellant had already deposited amounts sufficient for part of the demand and had raised a prima facie case on the remaining issue. It held that the flying experience certificate had to be assessed against the aircraft regulatory framework, including certification requirements under Rule 67A(4), and that the Revenue's circular did not prevent scrutiny of whether the certificates issued were recognised in law. The matter required deeper examination at final hearing, so interim relief was granted on the remaining demand.

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Issues: Whether the appellant was entitled to waiver of the balance pre-deposit in the service tax appeal, having regard to the nature of the training certificates issued under the aircraft regulatory framework and the amount already deposited.

Analysis: The Tribunal noted that the flying experience certificate relied upon by the appellant was traceable to the aircraft rules and that the evidence for commercial pilot licensing had to be certified by the appropriate authority under Rule 67A(4). The Tribunal further observed that the circular relied upon by the Revenue did not foreclose examination of whether the certificates issued by the appellant were recognised in law, and that the issue required deeper scrutiny at the stage of final disposal. Since the appellant had already deposited amounts considered sufficient for some of the demands, and a prima facie case was made out on the remaining issue, the Tribunal found the balance pre-deposit could be waived.

Conclusion: The appellant was entitled to waiver of the balance pre-deposit.

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