Pre-deposit relief in service tax dispute denied where prima facie case against business auxiliary service was weak.

In a service tax dispute concerning alleged business auxiliary service, the applicants argued that they only maintained a petroleum outlet and were not providing taxable auxiliary services. The Revenue relied on their role in selling petroleum products on behalf of the company. The CESTAT found that the applicants had not established a strong prima facie case for complete waiver of pre-deposit. Full waiver was therefore declined, and the applicants were directed to deposit Rs. 35,000 each in addition to amounts already paid; on such deposit, the balance pre-deposit of service tax and penalties was waived.

---

---

Issues: Whether the applicants were entitled to full waiver of pre-deposit in a service tax matter involving an alleged business auxiliary service, and if not, what pre-deposit should be directed.

Analysis: The applicants contended that they were only maintaining the outlet of the petroleum company and were not rendering business auxiliary service. The Revenue relied on the fact that the applicants were selling petroleum products on behalf of the company. On the material placed, the applicants were found not to have made out a strong prima facie case for total waiver of pre-deposit.

Outcome: Full waiver was declined. The applicants were directed to deposit Rs. 35,000 each in addition to the amount already deposited, and on such deposit the balance pre-deposit of service tax and penalties stood waived.

---