Pre-deposit waiver in service tax dispute limited to partial relief where prima facie case for full waiver was not shown.

At the interim stage, the applicant was not able to substantiate the alleged use of the disputed services, so no strong prima facie case for full waiver of pre-deposit was made out. The CESTAT therefore granted only a partial waiver of the pre-deposit demanded towards service tax, interest and penalty under the Cenvat Credit Rules, 2004, and stayed recovery of the balance during pendency of the appeal.

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Issues: Whether the applicant was entitled to unconditional waiver of pre-deposit in respect of the service tax, interest and penalty demanded under the Cenvat Credit Rules, 2004.

Analysis: The application was considered at the interim stage. The applicant had not substantiated the alleged use of the disputed services, and no strong prima facie case for complete waiver was made out. The order therefore required only a partial pre-deposit and granted stay of recovery of the balance during the pendency of the appeal.

Outcome: Partial waiver of pre-deposit granted, with recovery of the balance stayed during the appeal.

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