Pre-deposit waiver in service tax dispute granted conditionally after partial deposit and stay of recovery pending appeal.

A waiver of pre-deposit for the balance demand was granted in a service tax dispute involving a sub-contractor, with recovery of the remaining amount stayed pending appeal. The tribunal noted the appellant's limitation plea, including the contention that returns had been filed for some periods while the Department relied on non-filing for others to invoke the extended period. As the merits required detailed examination at final hearing, and financial hardship was shown, the appellant was directed to make a partial deposit as a condition for interim relief.

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Issues: Whether waiver of pre-deposit of the balance demand and stay of recovery could be granted pending disposal of the appeal, subject to a partial deposit.

Analysis: The dispute involved a contentious question on service tax liability of a sub-contractor and the plea of limitation. The records indicated that returns had been filed for some years, while the Department relied on non-filing for other periods to justify invocation of the extended period. The matter was found to require detailed examination at final hearing. The claim of financial hardship was noted, and the appellant was directed to make a partial deposit to balance the interests of both sides.

Conclusion: The application for waiver of pre-deposit of the balance amount was allowed subject to deposit of Rs. 15 lakhs, and recovery of the remaining amount was stayed till disposal of the appeal.

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