Conditional pre-deposit secures waiver of balance duty and penalty in a service tax dispute.

The Tribunal granted conditional waiver of recovery in a service tax dispute by requiring a further pre-deposit before the balance duty and the entire penalty would remain waived. It took note of the appellant's submission on the nature of activity and the amount already deposited, and directed compliance with the pre-deposit condition within the stipulated time. Subject to that compliance, recovery of the remaining duty and penalty was stayed; failure to comply would leave the demand and penalties enforceable.

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Issues: Whether the balance amount of duty and penalty could be waived subject to a further pre-deposit in the service tax dispute.

Analysis: The demand and penalties were already confirmed against the appellant under the service tax provisions. Taking note of the appellant's contention regarding the nature of activity and the amount already deposited, the Tribunal directed a further deposit of Rs. 10 lakhs within eight weeks. It also ordered that, subject to compliance, recovery of the balance duty and the entire penalty would remain waived.

Conclusion: The appellant was granted conditional waiver of the balance duty and penalty subject to depositing Rs. 10 lakhs within the stipulated time.

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