Pre-deposit waiver in service tax dispute granted after prima facie finding of no suppression and time-barred demand.

In a service tax dispute, the Tribunal waived the balance pre-deposit where the assessee had already paid a substantial part of the tax and interest before the show cause notice. It held, prima facie, that the extended limitation period was not sustainable because the record showed bona fide doubt on liability and no material of suppression, misstatement, fraud, collusion, or intent to evade duty. The demand was therefore treated as prima facie time-barred for pre-deposit purposes, and the remaining deposit was dispensed with.

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Issues: Whether the balance pre-deposit should be waived in a service tax dispute where the assessee had already deposited part of the duty and interest, and whether the demand was, prima facie, hit by limitation on account of absence of suppression or mala fide intent.

Analysis: The order records that the assessee had deposited a substantial part of the tax and interest before issuance of show cause notice. It further notes that the authority below itself found bona fide doubt, lack of clarity on liability, and no material suggesting suppression, misstatement, fraud, collusion, or intent to evade duty. On that basis, the Tribunal found the invocation of the extended period unsustainable, at least prima facie, and treated the demand as barred by limitation for the purpose of pre-deposit.

Outcome: The balance pre-deposit was dispensed with and the stay petition was allowed.

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