Pre-deposit waiver and stay of recovery granted in a service tax dispute over repair and maintenance services.

In a dispute over repair and maintenance services, the appellants sought exclusion of the value of goods supplied under Notification No. 12/2003-ST and interim protection against recovery of the adjudicated service tax demand. The Tribunal noted that a substantial part of the demand had already been paid and that the appellants had asserted absence of suppression or wilful misstatement, including that the services were rendered to a public sector undertaking. On the totality of circumstances, it granted waiver of pre-deposit of the remaining liabilities and stayed recovery of the balance demand pending disposal of the appeals.

---

---

Issues: Whether the appellants were entitled to waiver of pre-deposit of the adjudicated service tax liabilities and stay of recovery pending disposal of the appeals.

Analysis: The appellants had rendered repair and maintenance services and claimed exclusion of the value of goods supplied, relying on Notification No. 12/2003-ST dated 26.2.2003. The Tribunal noted that in several cases a substantial portion of the demand had already been paid, and that the appellants had also pleaded absence of suppression or wilful misstatement, including the fact that services were rendered to a public sector undertaking. In the totality of the circumstances, the Tribunal found it appropriate to grant interim relief.

Conclusion: Waiver of pre-deposit of the remaining adjudicated liabilities was granted and recovery of the balance demand was stayed during pendency of the appeals.

---