Tribunal waives pre-deposit on service tax appeal, directs deposit within 4 weeks

The Tribunal directed the applicant to deposit an additional sum of Rs. 2,00,000 within four weeks. Upon this deposit, the pre-deposit of the remaining service tax, interest, and penalties was waived, and recovery stayed until the appeal's disposal, with a compliance report due on 2nd April, 2009.

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Issues: Stay application for waiver of pre-deposit of service tax, education cess, interest, and penalties under various sections of the Finance Act, 1994.

Analysis:
1. The applicant filed a stay application seeking waiver of pre-deposit of service tax, education cess, interest, and penalties under different sections of the Finance Act, 1994.

2. The applicant argued that they received transport services only from 'Goods Transport Operators' (GTO) and not 'Goods Transport Agencies' (GTA), emphasizing the distinction between the two. Additionally, they mentioned having already deposited a significant amount during the proceedings.

3. After reviewing the submissions and records, the Tribunal found the issue to be debatable. It was acknowledged that the applicant received transport services for goods at their factory, making them liable for service tax post an amendment to Rule 2(1) of the Service Tax Rules, 1994.

4. While the Tribunal did not find a prima facie case for full waiver of pre-deposit, considering the amount already deposited by the applicant, they directed them to deposit an additional sum of Rs. 2,00,000 within four weeks. Upon this deposit, the pre-deposit of the remaining service tax, interest, and penalties was waived, and recovery stayed until the appeal's disposal, with a compliance report due on 2nd April, 2009.

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