Taxable technical testing and analysis services claim failed at the interim stage; stay of appellate order was rejected.

The Tribunal refused to stay operation of the appellate order because the Revenue had not shown, on the materials then before it, that the respondent clearly provided taxable technical testing and analysis services to domestic concerns other than job workers, or that the foreign concerns were manufacturing in India for testing in the respondent's laboratory. The Tribunal treated its view as prima facie only and found the factual basis insufficient to support interim restraint. The Revenue's stay application was therefore rejected and the appellate order continued to operate.

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Issues: Whether the Revenue was entitled to stay operation of the appellate order on the footing that the respondent had rendered taxable technical testing and analysis services to domestic concerns and foreign concerns.

Analysis: The Tribunal recorded only a prima facie view on the materials before it and found that it could not clearly trace whether any commercial service had been provided domestically to concerns other than the job workers, or whether the foreign concerns were manufacturing in India for testing in the respondent's laboratory.

Outcome: Operation of the appellate order was not stayed and the Revenue's stay application was rejected.

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