Pre-deposit waiver in service tax dispute allowed partly, with further deposit ordered and recovery stayed on compliance.

Partial waiver of pre-deposit was granted in a service tax dispute because the appellant had already deposited a substantial part of the demand and no prima facie case was made out against the impugned demand. The Tribunal directed a further deposit of Rs. 1 lakh within six weeks, taking total pre-deposit to Rs. 3,83,250 against a demand of about Rs. 5.1 lakhs. On compliance, recovery of the balance demand and related proceedings was stayed, and the penalties were kept in abeyance.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the demand for service tax, education cess, and interest, and what amount should be directed as pre-deposit.

Analysis: The appellant had already deposited a substantial part of the demand. The Tribunal found no prima facie case against the impugned demand and considered a further deposit of Rs. 1 lakh to be reasonable, taking the total pre-deposit to Rs. 3,83,250/- against the demand of about Rs. 5.1 lakhs. On due compliance with this direction, the balance demand and related recoveries were to remain stayed, and the penalties were also to be kept in abeyance.

Outcome: Partial waiver of pre-deposit was granted, subject to further deposit of Rs. 1 lakh within six weeks, with stay of recovery on compliance.

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