Limited pre-deposit and stay of recovery in service tax appeals granted on prima facie assessment and earlier connected order.

In stay proceedings for service tax appeals, the Tribunal may grant partial relief where a prima facie assessment and an earlier connected order support limited interim protection. Here, considering the appellant's submissions on the construction activity, the disputed demand, and the approach taken in the appellant's earlier matter, the Tribunal required only a limited pre-deposit and protected the balance demand during appeal. The appellant was directed to deposit Rs. 25,00,000 within eight weeks, and on compliance, waiver of the remaining pre-deposit and stay of recovery were granted.

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Issues: Whether the appellant should be directed to make a further pre-deposit and, on such deposit, whether recovery of the balance demand should be stayed during the pendency of the appeals.

Analysis: The matter arose from stay applications in service tax appeals involving substantial demands. The Tribunal took into account the earlier stay order in the appellant's own case and the appellant's contention regarding the nature of the construction activity and the extent of the disputed demand. In view of the materials placed and the earlier approach adopted in the connected matter, the Tribunal considered it appropriate to require only a limited pre-deposit and to grant interim protection thereafter.

Conclusion: The appellant was directed to pre-deposit Rs. 25,00,000 within eight weeks, and on such deposit, waiver of the balance pre-deposit and stay of recovery were granted.

Ratio Decidendi: In stay matters, where a prima facie assessment and the position taken in an earlier connected order justify partial relief, the Tribunal may limit the pre-deposit and grant stay of recovery of the remaining demand pending appeal.

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