Waiver of balance pre-deposit in service tax appeal granted where liability required final verification.

A request for waiver of the balance pre-deposit in a service tax appeal was considered where the appellants had already made a substantial deposit and the exact liability required verification at the final hearing. The Bench took a prima facie view that the correct computation of tax payable could be examined in detail only at the merits stage, so the balance pre-deposit was waived and recovery was stayed until disposal of the appeal.

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Issues: Whether waiver of the balance pre-deposit of service tax could be granted pending appeal, and whether recovery should be stayed till disposal of the appeal.

Analysis: The appellants had already deposited a substantial part of the disputed service tax amount and contended that the exact tax liability required verification at the final hearing. The dispute concerned the correct computation of the amount payable, and the Bench formed a prima facie view that the issue could be examined in detail only at the final stage.

Conclusion: The balance pre-deposit was waived and recovery was stayed till the appeal was heard and disposed of.

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