Pre-deposit waiver in service tax appeal denied, but deposit burden reduced and merits hearing preserved after compliance.

In a service tax appeal, the Tribunal declined waiver of the entire pre-deposit because no prima facie case justified complete relief under the appellate deposit scheme. It nevertheless reduced the deposit burden by taking account of the amount already paid, permitting the balance to be deposited in instalments and adjusted against the total required sum. On compliance with the revised deposit direction, the appeal was to be heard on merits by the Commissioner (Appeals), so the dismissal for non-compliance was not left undisturbed in its original form.

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Issues: Whether the appellant was entitled to waiver of the entire pre-deposit and whether the dismissal of the appeal for non-compliance should be interfered with.

Analysis: The appellant had been directed to make a pre-deposit under the statutory scheme governing appeals under service tax matters. The Tribunal found that no prima facie case was made out for waiver of the entire amount. At the same time, it took note of the amount already deposited and considered it appropriate to reduce the burden by directing a further pre-deposit in instalments, with the earlier payment to be adjusted against the total required deposit. On compliance, the appeal was to be heard on merits by the Commissioner (Appeals).

Conclusion: Waiver of the entire pre-deposit was declined, but the pre-deposit amount was reduced and the matter was remanded for disposal on merits after compliance.

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