Pre-deposit waiver in service tax dispute denied where security services were prima facie rendered for consideration.

Security services rendered for consideration were treated as prima facie taxable, despite the applicant's contention that it was acting as home guards performing statutory duties under the Punjab Home Guards Act, 1947. On the admitted facts, the service tax demand was linked to consideration received for security services, so complete waiver of pre-deposit was not justified at the stay stage. Partial relief was granted instead: the applicant was directed to deposit Rs. 3,00,000, and waiver of the balance pre-deposit was allowed pending disposal of the appeal.

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Issues: Whether the applicant was entitled to complete waiver of pre-deposit in respect of the service tax demand arising from security services rendered for consideration.

Analysis: The applicant claimed that, being home guards discharging statutory duties under the Punjab Home Guards Act, 1947, it was not rendering any taxable service. The Revenue relied on the nature of the activity and the fact that security services were provided to a public body for consideration. On the admitted facts, the demand was prima facie linked to consideration received for security services, and the case did not justify total waiver of the amount demanded at the stay stage.

Conclusion: Complete waiver of pre-deposit was denied. The applicant was directed to deposit Rs. 3,00,000, and waiver of the balance pre-deposit was granted till disposal of the appeal.

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