Pre-deposit waiver in service tax dispute rejected where appellant failed to show activities were non-commercial.

In a service tax dispute over classification as a commercial training and coaching centre, the appellant failed to produce substantial evidence that its activities were not commercial in nature, so no prima facie case for complete dispensation of pre-deposit was made out. The Board circular relied on was read as clarifying that charitable purpose alone does not exclude a service from tax where the levy is imposed by statute. Total waiver of pre-deposit was therefore rejected, and partial pre-deposit was directed with stay of recovery of the balance demand on compliance.

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Issues: Whether the appellant had made out a case for total waiver of pre-deposit in the service tax dispute concerning classification as a commercial training and coaching centre.

Analysis: The appellant failed to produce substantial evidence to show that its activities were not commercial in nature. The Board circular relied upon clarified that charitable purpose by itself does not exclude a service from tax where the levy is created by statute. On the material placed, the appellant did not establish a prima facie case for complete dispensation of pre-deposit.

Conclusion: The request for total waiver of pre-deposit was rejected and a partial pre-deposit was directed, with stay of recovery of the balance demand on compliance.

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