Pre-deposit waiver and service tax exemption: Tribunal declined full relief where freight exceeded the threshold and hardship was not shown.

Complete waiver of pre-deposit was refused in stay proceedings because the appellant did not establish a strong case for exemption under Notification No. 34/2004-ST. The Tribunal noted that the transport involved a single consignment and that the freight exceeded the relevant exemption threshold. It also held that an earlier relied-on decision did not prevail over the later final decision cited by the Revenue, and that an interim order does not constitute ratio decidendi. In the absence of pleaded financial hardship, the appellant was directed to deposit the service tax demand, with waiver of the balance dues and stay of recovery on compliance.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit in the stay proceedings on the basis of the exemption under Notification No. 34/2004-ST dated 03/12/2004.

Analysis: The dispute turned on the scope of the service tax exemption for consignments transported in a goods carriage. On the facts recorded, the transport involved a single consignment and the freight charged for that consignment exceeded the lower exemption threshold. The Tribunal held that the earlier decision relied upon by the appellant did not displace the later final decision cited by the Revenue, and also noted that an interim order does not lay down ratio decidendi. In the absence of any pleaded financial hardship, the appellant failed to establish a case for full waiver of the duty and tax adjudged.

Conclusion: Complete waiver of pre-deposit was declined; the appellant was directed to deposit the service tax demand, with waiver of the balance dues and stay of recovery upon compliance.

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