Pre-deposit waiver in service tax disputes may be granted partially where financial hardship justifies nominal compliance.

Financial hardship and surrounding facts can justify partial dispensation of pre-deposit in a service tax appeal involving alleged Rent-a-Cab liability. The Tribunal found that the applicant, who contested the service tax demand and penalty, was entitled to relief from the full pre-deposit requirement. It directed a nominal deposit of Rs. 10,000, and on compliance waived the balance duty pre-deposit as well as the entire penalty, disposing of the stay application on that basis.

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Issues: Whether the applicant was entitled to waiver of pre-deposit of the service tax demand and penalty pending appeal in a matter concerning alleged liability for Rent-a-Cab service.

Analysis: The demand arose from the allegation that the applicant, owner of a Maruti van attached to a company, was rendering taxable Rent-a-Cab service. Considering the pleaded financial hardship and the circumstances of the case, the Tribunal found it appropriate to grant partial relief on the pre-deposit requirement.

Conclusion: The applicant was directed to deposit Rs. 10,000, and on such deposit the pre-deposit of the balance amount of duty and the entire penalty was waived.

Final Conclusion: The stay application was disposed of by granting partial waiver of pre-deposit subject to a nominal deposit.

Ratio Decidendi: In deciding waiver of pre-deposit, financial hardship and the surrounding facts may justify partial dispensation of the deposit requirement.

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