Pre-deposit waiver for penalty under service tax law granted where tax was found not leviable for the period.

Waiver of pre-deposit was considered for a penalty imposed under Section 76 of the Finance Act, 1994, where the appellate record showed that tax was held not leviable for the material period. In that background, interim protection was granted and the penalty pre-deposit was waived pending disposal of the appeal.

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Issues: Whether pre-deposit of penalty under Section 76 of the Finance Act, 1994 was to be waived pending disposal of the appeal, in view of the Commissioner of Central Excise's revised order and the Commissioner (Appeals)' finding that tax was not leviable for the material period.

Analysis: The application concerned waiver of pre-deposit in relation to a penalty imposed under Section 76. The record indicated that the Commissioner (Appeals) had held tax to be not leviable for the material period, and the stay request was considered in that background. On that basis, the pending appeal was found fit for interim protection against pre-deposit.

Conclusion: Pre-deposit of the penalty under Section 76 was waived till disposal of the appeal, and the stay application was allowed.

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