Pre-deposit waiver in service tax dispute granted where the issue was under Board examination and recovery was stayed pending appeal.

In a service tax dispute involving tour operators and contract carriages, CESTAT Bangalore dispensed with the entire pre-deposit of tax, interest and penalty because the issue was stated in a Board communication to be under examination and adjudication matters were to be kept in abeyance. The Tribunal treated the administrative pendency as sufficient to justify interim relief and also protected the appellants from coercive recovery while the appeal remained pending.

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Issues: Whether the appellants were entitled to waiver of pre-deposit of the service tax, interest and penalty demanded in the impugned order and consequential protection against coercive recovery pending disposal of the appeal.

Analysis: The demand related to service tax on tour operators and contract carriages. The appellants relied on a Board communication stating that the issue was under examination and that adjudication matters were to be kept in abeyance. In view of this pendency at the administrative level, the Tribunal found it appropriate to dispense with the pre-deposit of the entire dues demanded in the impugned order and to protect the appellants from coercive recovery during the pendency of the appeal.

Conclusion: Waiver of the entire pre-deposit was granted and no coercive action was directed to be taken pending disposal of the appeal.

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