M.V. Ravindran, Judicial Member - This stay petition is filed by the assessee for waiver of pre-deposit of the following amounts :

(i)Service Tax Rs. 9,65,916/-;

(ii)Interest under Section 75 of the Finance Act, 1994;

(iii)Penalty of Rs. 200/- per day or 2% of the tax per month whichever is higher under Section 76 of the Act; and

(iv)Penalty of Rs. 9,65,916/- under Section 78 of the Act.

2. Heard both sides and perused the records.

3. The learned Counsel submits that the departmental authority seeks recovery of the service tax on the ground that the appellants being service recipient, receiving taxable services in India, were liable to pay service tax liability. He submits that the provisions of clause 105(zh) of Section 65 of the Finance Act, 1994 for the services obtained by appellants which were categorized under "Online information and database access or retrieval services" will not apply in the present case. He submits that the appellants have already deposited an amount of Rs. 4.92 lakhs against the total demand of Rs. 9,65,916/- and seeks waiver of pre-deposit of the balance amounts involved.

4. Heard the learned DR who reiterates the findings of the Commissioner (Appeals).

5. On a careful consideration of the submissions made by both sides, we find that the issue involved needs a detailed analysis of definition of the services under the category of ‘Online information and database access or retrieval services’ and the activities undertaken by the appellant. It is also undisputed fact that the appellant is recipient of services and the entire activity was conducted at Singapore. At this juncture, we find that the issue needs to be gone into detail and that can be done only at the time of final disposal of the appeal. Accordingly, we are of the considered view that the appellants have not made out prima facie case for complete waiver of the amounts involved. Therefore we direct the appellant to deposit an amount of Rs. 5 lakhs (Rupees Five lakhs only) after considering the fact that they have already deposited an amount of Rs. 4.92 lakhs, within a period of four weeks from today and report compliance on 24-11-2010 before the Assistant Registrar of this Bench. Subject to such compliance being reported, the application for waiver of pre-deposit of the balance amounts involved is allowed and recovery thereof stayed till the disposal of the appeal.