Conditional pre-deposit in service tax dispute where prima facie record did not justify full waiver of recovery.
Conditional pre-deposit was required in a service tax dispute where demand had been confirmed by invoking the extended period of limitation. The appellant sought full waiver and stay on the basis of earlier decisions, but the record did not sufficiently support the factual claim that payments were made to foreign banks rather than an Indian bank. Interim protection was therefore granted only in part: the assessed tax and interest had to be deposited within the stipulated time, while the penalty component was excluded from the deposit condition. Compliance was required for protection against coercive recovery.
Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of further proceedings in respect of the confirmed service tax demand and penalties.
Analysis: The demand related to service tax liability confirmed for the relevant period by invoking the extended period of limitation. The appellant relied on prior decisions to seek complete waiver, but the entitlement to such relief depended on whether the factual claim regarding payments made to foreign banks, as opposed to an Indian bank, was supported by material on record. On the available record, no sufficient material was shown to justify full waiver at the interim stage. The Court therefore granted conditional protection by requiring deposit of the assessed tax and interest, while excluding the penalty component.
Conclusion: The appellant was granted waiver of pre-deposit and stay of further proceedings subject to deposit of the assessed tax and interest within the stipulated time and compliance reporting.
Final Conclusion: Interim relief was granted only in part, with the appeal protected against coercive recovery upon compliance with the specified monetary condition.
Ratio Decidendi: Waiver of pre-deposit at the interim stage may be granted conditionally where the appellant does not establish a sufficiently supported prima facie basis for full exemption from deposit.
TaxTMI 
AI Drafter ✕
TaxTMI 
