Prima facie waiver of pre-deposit granted where service tax demand appeared linked to computer hardware maintenance, not software.

A prima facie case for waiver of pre-deposit was found where the disputed service tax demand on maintenance and repair services appeared, on the notifications and circulars relied upon, to concern computer hardware rather than software. The assessee's substantial payment towards the demand, and payment under protest for the technical inspection and certification services demand, supported stay relief. Waiver of pre-deposit and stay of recovery were therefore granted in favour of the assessee.

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Issues: Whether the assessee had made out a prima facie case for waiver of pre-deposit and stay of recovery of the service tax demands.

Analysis: The disputed demand for maintenance and repair services was based on notifications and circulars that, on a prima facie view, appeared to relate to maintenance or repair of computer hardware rather than software. The assessee also showed substantial payment already made towards the demand and payment under protest in respect of the technical inspection and certification services demand, which stood satisfied.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the assessee.

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