Pre-deposit in service tax dispute denied where short payment remained and recipient liability for foreign services was admitted.

In a service tax dispute concerning training services, Cenvat credit and tax on services received from foreign associated companies, CESTAT Mumbai held that complete waiver of pre-deposit was not justified because a short payment remained even after accounting for amounts already deposited, Cenvat credit adjustment and the claim under Notification No. 9/2003-ST for computer training. The Tribunal also noted the appellant's admission that taxable services were received from foreign service providers, creating liability as recipient. The appellant was therefore directed to deposit Rs. 20,00,000 in addition to amounts already paid, while the balance demand was waived and recovery stayed during the appeal.

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Issues: Whether the appellant had made out a case for total waiver of pre-deposit in a service tax matter involving disputed liability on training services, disallowance of Cenvat credit, and tax on services received from foreign associated companies.

Analysis: The Tribunal noted that even after giving the appellant the benefit of the amounts already deposited, the adjustment of Cenvat credit, and the claim under Notification No. 9/2003-ST for computer training, a further short payment still remained. It also recorded that the appellant admitted receipt of taxable services from foreign service providers, which gave rise to liability as a recipient. On these facts, the appellant was not entitled to complete waiver of pre-deposit.

Conclusion: The appellant was directed to deposit Rs. 20,00,000/- in addition to the amount already deposited, and the balance demand was waived and recovery stayed during the pendency of the appeal.

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