Pre-deposit waiver in port services dispute granted on prima facie case, limitation, and absence of suppression.

Full waiver of pre-deposit was granted in a port services dispute where the appellants showed a prima facie case against the demand and raised a limitation objection. The Bench noted that the department had already been informed of the activities, service tax was being paid under the relevant Board circular, and suppression of facts was not established for invoking the longer limitation period. Relying on an earlier decision of the same Bench, affirmed by the High Court, and a similar stay order in an identical matter, the disputed amount was stayed from recovery until disposal of the appeal.

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Issues: Whether the appellants were entitled to full waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The demand related to alleged port services and the appellants contended that the department had already been informed of their activities, that service tax was being paid on the basis of the relevant Board circular, and that there was no suppression of facts warranting invocation of the longer limitation period. The matter was also stated to be covered by an earlier decision of the same Bench affirmed by the High Court, and a similar stay application in an identical dispute had already been granted full waiver. In view of the prima facie case and the limitation issue, the Bench found it appropriate to grant complete waiver of the amount demanded at the pre-deposit stage.

Conclusion: Full waiver of pre-deposit was granted and recovery of the disputed amount was stayed till disposal of the appeal.

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