Pre-deposit waiver and recovery stay granted where invoices separated material value and service charges under service tax abatement rules.

Waiver of pre-deposit and stay of recovery were granted pending appeal after the Tribunal found a prima facie case on the availability of abatement under Notification No. 12/03-S.T. The demand had been confirmed on the basis that the materials were consumed and not sold, but the invoices separately reflected material cost and service charges, and sales tax had been paid on the material value. Relying on a prior Tribunal order on similar facts, the interim relief was allowed.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

Analysis: The demand had been confirmed on the footing that the materials were consumed and not sold, so that the benefit of abatement under Notification No. 12/03-S.T. was unavailable. The Tribunal found a prima facie case in favour of the appellant, noting that the invoices separately showed material cost and service charges and that sales tax had been paid on the value of the materials. In the light of the cited Tribunal order on similar facts, the request for interim relief was allowed.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellant pending the appeal.

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