Interim stay on service tax demand: prima facie abatement claim and consolidated transporter declarations justified waiver of pre-deposit.

At the interim stage, the Tribunal considered that a prima facie dispute existed on entitlement to abatement for goods transport agency services and that part of the demand had already been deposited, so the balance pre-deposit was waived and recovery of the remaining dues was stayed pending final hearing. It also noted that consolidated declarations from transporters, stating that they were unregistered and had not taken Cenvat credit, could prima facie satisfy the documentary condition for abatement, and that the form of declaration need not be applied rigidly at that stage. The merits of the abatement claim were left open for final adjudication.

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Issues: (i) Whether, at the stage of admission, the assessee was entitled to waiver of pre-deposit and stay of recovery in respect of the service tax demand on GTA services. (ii) Whether declarations furnished by transporters in consolidated form could, prima facie, satisfy the condition for availing abatement under the relevant notifications.

Issue (i): The appeal arose from a demand confirmed on the footing that the assessee had not established entitlement to the abatement available for goods transport agency services. The Tribunal noted that the assessee had already deposited part of the demand and that the material placed at that stage disclosed a prima facie dispute requiring consideration at final hearing.

Conclusion: The balance pre-deposit was waived and recovery of the remaining dues was stayed during the pendency of the appeal.

Issue (ii): The assessee relied on declarations from transporters stating that they were not registered with the service tax department and had not availed Cenvat credit. The Tribunal observed that, prima facie, consolidated declarations by transport operators could serve the purpose and that insistence on a declaration in each consignment note need not be rigidly applied at that stage.

Conclusion: The objection regarding the form of declarations was left open for final hearing and did not defeat interim relief.

Final Conclusion: Interim protection was granted to the assessee by suspending recovery of the disputed balance demand, while the merits of the abatement claim were kept for final adjudication.

Ratio Decidendi: At the interim stage, where a prima facie case exists and part payment has been made, pre-deposit and recovery may be waived pending final adjudication, and documentary conditions for abatement need not be insisted upon with undue rigidity.

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