Pre-deposit waiver granted for banking-company credit based on NPCI data, with recovery stayed pending appeal.

Pre-deposit for disputed service tax dues was waived where a banking company's credit was based on NPCI-generated information relating to inter-bank transactions and the material did not show any loss of revenue. The Tribunal found that insisting on payment at the admission stage would be unjust on the facts presented, and that the balance of convenience supported protection against coercive recovery pending appeal. Recovery of the disputed dues was therefore stayed until disposal of the appeal.

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Issues: Whether pre-deposit of the dues arising from the impugned order should be waived and recovery stayed pending disposal of the appeal.

Analysis: The appellant is a banking company and the credit was taken on the basis of information generated through NPCI in relation to inter-bank transactions. The Tribunal noted that, on the facts placed before it, the document basis for credit was not shown to have caused loss of revenue. It further held that, in the circumstances, requiring pre-deposit at the stage of admission would be unjust, and the balance of convenience favoured protection of the appellant from coercive recovery pending appeal.

Conclusion: Pre-deposit was waived and recovery of the disputed dues was stayed till disposal of the appeal.

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