Pre-deposit waiver in service tax dispute granted after tax demand was paid, limiting deposit to remaining penalties and interest.

In a service tax dispute, the Tribunal considered whether pre-deposit could be waived for the balance penalties and interest after the service tax demand had already been paid following adjudication. The appellant had been directed to pre-deposit service tax, an equal penalty under Section 78 of the Finance Act, 1994, and further penalties under Sections 77 and 76. Noting that the tax liability had been discharged immediately after adjudication, the Tribunal confined the pre-deposit requirement to the remaining penalties and interest and granted waiver of the balance amount.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of the balance amount of penalties and interest in a service tax matter where the service tax demand had already been paid after adjudication.

Analysis: The appellant had been directed to pre-deposit service tax, equal penalty under Section 78 of the Finance Act, 1994, and further penalties under Sections 77 and 76 of the Finance Act, 1994. It was brought to the notice of the Tribunal that the entire service tax amount had been paid immediately after adjudication. In that background, the Tribunal granted waiver of the balance pre-deposit, confining the pre-deposit requirement to the remaining penalties and interest.

Conclusion: The appellant was entitled to waiver of pre-deposit of the balance penalties and interest, and the stay application was allowed.

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