Abatement for research and development cess supported waiver of pre-deposit in service tax dispute.

Research and development cess paid under Notification No. 17/04-S.T. was treated as prima facie eligible for abatement while computing service tax liability, supporting the appellant's claim for interim relief. On that reading of the notification, the appellant established a sufficient prima facie case for waiver of pre-deposit, and recovery of the adjudged dues was stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled, for the purpose of waiver of pre-deposit, to the benefit of abatement in respect of research and development cess paid under Notification No. 17/04-S.T. dated 10-09-2004.

Analysis: The appellant challenged the denial of abatement of research and development cess while computing service tax liability. On a prima facie reading of the notification, the amount of such cess appeared eligible for abatement, and this was sufficient to show a prima facie case for interim relief.

Outcome: Waiver of pre-deposit was granted and recovery of the adjudged dues was stayed pending disposal of the appeal.

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