Service tax classification of digital and SSL certificate services narrowed waiver of pre-deposit in appeal.

In a service tax dispute over Digital Signature Certificate and Secure Socket Layer Certificate services, the tribunal examined whether the activities involved recording data in machine-readable form so as to fall within information technology software services. It noted that the certificates were created and issued through a software platform, which supported the department's classification, while also recording some doubt about demands under Business Support Service and Development and Supply of Contents Services. On that basis, the applicant was held not to have shown a strong prima facie case for complete waiver of pre-deposit, and partial pre-deposit with protection from recovery pending appeal was directed.

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Issues: Whether the applicant had made out a strong prima facie case for complete waiver of pre-deposit in a service tax dispute concerning Digital Signature Certificate and Secure Socket Layer Certificate services under the category of information technology software services.

Analysis: The dispute turned on the nature of the services and whether the activities involved recording of data in machine-readable form so as to fall within the definition of information technology software and the corresponding taxable service. The order notes that the applicant used a software platform to create and issue DSC and SSL certificates, and that the activities appeared to involve machine-readable processing. At the same time, the reasoning records some force in the submission that the demand under other heads such as Business Support Service and Development and Supply of Contents Services in relation to SSL certificates was not fully free from doubt. On that assessment, the applicant was found not to have established a strong prima facie case for complete waiver of the dues.

Conclusion: Complete waiver of pre-deposit was declined, and the applicant was directed to pre-deposit Rs. 1 crore with waiver of the balance and stay on recovery during the pendency of the appeal.

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