Pre-deposit waiver in service tax dispute: existing deposit accepted for one assessee, while partial deposit was required for the other.

In a service tax dispute concerning alleged liability under business auxiliary service, the CESTAT considered whether pre-deposit of tax and penalties should be waived. For Chambal Motors Pvt. Ltd., the amount already deposited was treated as sufficient and the balance pre-deposit of service tax and penalties was waived. For the connected applicant, the Tribunal required a partial pre-deposit before granting waiver of the remaining amount. The operative effect was a conditional relief on pre-deposit, with full waiver granted only where the existing deposit was found adequate.

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Issues: Whether waiver of pre-deposit of service tax and penalties was warranted in a matter involving alleged liability under business auxiliary service.

Outcome: For Chambal Motors Pvt. Ltd., the amount already deposited was held sufficient and the remaining pre-deposit of service tax and penalties was waived. For the connected applicant, partial pre-deposit was directed before waiver of the balance.

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