Prima facie entitlement to GTA exemption justified complete waiver of pre-deposit pending final hearing.

Manufacturers receiving goods transport agency services claimed the benefit of Notification No. 32/2004-ST, under which service tax liability was limited to 25% of the gross amount paid. A Section 37B order under the Central Excise Act, 1944 was cited to support the view that the exemption applied to the person liable to pay service tax, and declarations from the goods transport agency stated that no credit had been availed. On that basis, the demand was treated as disclosing a strong prima facie case for the appellants, while the objection on endorsements in the consignment note was left for final hearing. The text states that complete waiver of pre-deposit and protection against coercive recovery were granted pending appeal.

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Issues: Whether the appellants were entitled to complete waiver of pre-deposit and stay of recovery on the ground that they had a strong prima facie case for the benefit of Notification No. 32/2004-ST.

Analysis: The appellants, as manufacturers receiving goods transport agency services, sought the benefit of Notification No. 32/2004-ST, which restricted service tax liability to 25% of the gross amount paid. The order under Section 37B of the Central Excise Act, 1944 was relied upon to support the view that the exemption was available to a person liable to pay service tax on such services. The record also contained declarations from the goods transport agency stating that no credit had been availed. In these circumstances, the demand was found to raise a strong prima facie case in favour of the appellants. The objection regarding endorsements in the consignment note was left for final hearing.

Conclusion: The appellants were held entitled to complete waiver of pre-deposit and protection against coercive recovery pending disposal of the appeal.

Ratio Decidendi: Where the assessee establishes a strong prima facie entitlement to an exemption notification and supporting declarations negate the Revenue's objection, complete waiver of pre-deposit may be granted pending final hearing.

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