Pre-deposit waiver under GTA exemption upheld on a prima facie challenge to tax and penalty demands.

Prima facie case for waiver of pre-deposit was made out where the appellants challenged service tax and penalties under the Goods Transport Agency exemption regime. The order noted the Board's clarification that recipients paying service tax on GTA services could claim abatement under Notification No. 32/2004-S.T., subject to the prescribed conditions. It also accepted the appellants' contention that the transporters were not GTA operators and that the show-cause notices proceeded on a basis different from the grounds on which the demands were ultimately confirmed. On those facts, recovery of tax and penalties was stayed till final disposal of the appeals.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of service tax and penalties demanded under the exemption notification governing Goods Transport Agency service.

Analysis: The order noted the Board's clarification that recipients discharging service tax liability on Goods Transport Agency service could claim abatement under Notification No. 32/2004-S.T., subject to the prescribed conditions. It was also noted that the appellants' case was that the transporters involved were not Goods Transport Agencies and that the show-cause notices had proceeded on a different basis from the grounds on which the demands were ultimately confirmed. In these circumstances, the order found that the appellants had shown a prima facie case against the demands and penalties.

Conclusion: Waiver of pre-deposit and stay of recovery of tax and penalties was granted till final disposal of the appeals.

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