Pre-deposit sufficiency in service tax dispute led to waiver of balance recovery and stay of enforcement during appeal.

The Tribunal treated the amount already deposited as sufficient pre-deposit for the appeal, taking into account the dispute over service tax on services received from a foreign service provider and the appellant's reliance on existing judicial view. It found the deposited sum exceeded the amount prima facie payable after the relevant date, so the balance service tax and penalties were waived as a pre-deposit requirement and recovery was stayed during pendency of the appeal.

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Issues: Whether the amount already deposited by the appellant could be treated as sufficient pre-deposit and whether recovery of the balance service tax and penalties should be stayed during pendency of the appeal.

Analysis: The Tribunal noted the nature of the dispute concerning service tax on services received from a foreign service provider and took into account the existing judicial view relied upon by the appellant, along with the submission that the amount already deposited exceeded the amount prima facie payable after the relevant date. On that basis, it found the deposited amount adequate for the purpose of pre-deposit under the applicable appellate provision.

Conclusion: The requirement of deposit of the balance amount of service tax and penalties was waived and recovery was stayed during the pendency of the appeal, in favour of the appellant.

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