Technical know-how transfer treated as an exchange for consideration, supporting interim waiver of pre-deposit and stay of recovery.

In a service tax dispute concerning transfer of technical know-how, the transaction was treated at the prima facie stage as an exchange of know-how for consideration rather than consultancy engineering services. Relying on the cited precedent on know-how transfer, the demand was considered not sustainable on an interim basis, and the balance of convenience justified protection pending appeal. Complete waiver of pre-deposit was therefore granted, and recovery of the dues was stayed until disposal of the appeal.

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Issues: Whether the appellant was entitled to complete waiver of pre-deposit and stay of recovery in a service tax dispute arising from transfer of technical know-how.

Analysis: The transaction was treated, at the prima facie stage, as an exchange of technical know-how for consideration rather than the rendering of consulting engineering services. The demand did not appear sustainable in view of the cited precedent on know-how transfer, and the balance of the case warranted interim protection pending disposal of the appeal.

Conclusion: Complete waiver of pre-deposit was granted and recovery of the dues was stayed till disposal of the appeal.

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