Pre-deposit waiver for penalties turns on a strong prima facie case and supporting interim relief facts.

Pre-deposit of penalties may be waived pending appeal where the appellant shows a strong prima facie case for interim relief. The Tribunal noted that the penalties had been enhanced in review proceedings, while the service tax demand and original penalties were not challenged, and it treated the appellant's reliance on Notification No. 13/2003 and its claim of acting as a commission agent as supporting interim relief. On that basis, the penalty pre-deposit was waived and the stay petitions were allowed for hearing of the appeals.

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Issues: Whether the penalties imposed in review proceedings were liable to be waived pending appeal.

Analysis: The Tribunal noted that the penalties had been enhanced in review proceedings, while the demand of service tax and the original penalties had not been challenged. It further noticed the appellant's reliance on Notification No. 13/2003 and the claim that it was functioning as a commission agent receiving commission from the product supplier. On these facts, the Tribunal found that the appellant had made out a strong prima facie case for interim relief.

Conclusion: The pre-deposit of the penalties was waived for hearing of the appeals, and the stay petitions were allowed.

Ratio Decidendi: Where the appellant shows a strong prima facie case in support of the appeal, pre-deposit of penalties may be waived pending final hearing.

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