Pre-deposit waiver in service tax disputes may remain conditional where no prima facie case or financial hardship is shown.

In a service tax dispute over inclusion of reimbursable expenses in taxable value, the Tribunal held that the appellant had not established a prima facie case for unconditional stay and had not pleaded financial hardship. It therefore declined complete waiver of pre-deposit and required a further partial deposit as a condition for interim relief. On compliance, the remaining duty demand and the entire penalty were waived, while the demand also involved penalties under Sections 76 and 78 of the Finance Act, 1994.

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Issues: Whether the appellant was entitled to unconditional waiver of pre-deposit in a service tax dispute concerning inclusion of reimbursable expenses in the taxable value, and whether any financial hardship justified complete stay of recovery.

Analysis: The Tribunal noted that the confirmed demand included duty and penalties under Sections 76 and 78 of the Finance Act, 1994. On the material before it, the appellant did not establish a prima facie case for unconditional stay, and no financial hardship was pleaded. Considering the amount already deposited, the Tribunal found it appropriate to direct a further partial deposit while granting waiver of the remaining pre-deposit on compliance.

Outcome: Conditional waiver of pre-deposit granted, subject to deposit of Rs. 25 lakhs within the stipulated time, and waiver of the balance duty and entire penalty thereafter.

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