Separate declaration can satisfy notification compliance and support waiver of pre-deposit and stay of recovery.

A separately filed declaration may satisfy the condition in Notification No. 32/2004-S.T. requiring confirmation that the service provider had not availed credit or related benefit, where the declaration was not endorsed on the consignment notes. For stay purposes, the tribunal treated this separate declaration as sufficient compliance with the notification requirement and granted waiver of the remaining pre-deposit. Recovery of the disputed service tax and penalty was stayed during pendency of the appeal.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery when the declaration required for claiming the benefit of Notification No. 32/2004-S.T. was filed separately.

Analysis: The demand had been confirmed on the ground that the necessary declaration regarding non-availment of credit by the service provider was not given on the consignment notes. The applicants, however, showed that a separate declaration had been filed stating that the service provider had not availed any credit or benefit under the relevant notification. On that basis, the requirement was treated as sufficiently complied with for the purpose of the stay application.

Conclusion: The applicants were entitled to waiver of the remaining pre-deposit, and recovery of the disputed service tax and penalty was stayed during pendency of the appeal.

Ratio Decidendi: A separately filed declaration can amount to sufficient compliance with the notification condition for the purpose of granting waiver of pre-deposit and stay.

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