Pre-deposit waiver for service tax penalty granted after tax and interest were paid before notice, with bona fide belief pleaded.

Waiver of pre-deposit and stay of recovery were granted in relation to penalty imposed under Section 76 of the Finance Act, 1994, where the appellant had paid service tax with interest before issue of the show-cause notice. The plea of bona fide belief under Section 80 was also relied on to support interim relief. The operative effect was that pre-deposit was waived and recovery of the penalty was stayed.

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Issues: Whether waiver of pre-deposit and stay of recovery of penalty imposed under Section 76 of the Finance Act, 1994 was warranted in view of the appellant's payment of service tax with interest before the show-cause notice and the plea of bona fide belief under Section 80 of the Finance Act, 1994.

Outcome: Pre-deposit was waived and recovery of the penalty was stayed.

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