Segregated service tax demand limited pre-deposit to computer training component; full stay was declined.

In stay proceedings concerning coaching and training services, relief was limited because the demand was capable of segregation between services covered by Notification No. 24/2004-Service Tax and computer training service, which was excluded. The authority was required to quantify only the portion attributable to computer training rather than sustain the entire demand. Since the computer training issue had already been decided against the applicant by the Supreme Court, pre-deposit was directed only for that component, and full waiver was declined. The stay petitions were disposed of with a direction to secure the segregated amount by deposit.

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Issues: Whether, in the stay petitions, the applicant was entitled to full waiver of pre-deposit where the demand related partly to services covered by Notification No. 24/2004-Service Tax and partly to computer training service.

Analysis: The demand arose from coaching and training services. The benefit of the notification had been extended to some services, while computer training service was excluded. The order noted that the demand was capable of segregation and that the authority below ought to have quantified the demand attributable to computer training instead of confirming the entire demand. As the computer training issue had already been decided against the applicant by the Supreme Court, only the amount relatable to that component was directed to be secured by pre-deposit.

Conclusion: Full stay was declined. The applicant was directed to deposit Rs. 1.30 lakhs towards the computer training component, and the stay petitions were disposed of accordingly.

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