Service tax pre-deposit waiver granted where prima facie exemption and small turnover supported the appellant's claim.

Commission received from foreign and local parties was proposed to be taxed as business auxiliary services, but the record showed a small turnover and a prima facie claim to exemption under the relevant notification's monetary threshold. On that basis, the CESTAT granted waiver of pre-deposit and stayed recovery of the service tax, interest and penalty until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery of service tax, interest and penalty in view of the claimed exemption under the notification and the prima facie nature of the dispute.

Analysis: The demand arose from commission received from foreign and local parties and its inclusion for service tax under business auxiliary services. The available record indicated a small turnover and a prima facie eligibility for the benefit of the exemption notification providing a monetary threshold for the financial year.

Conclusion: The appellant was granted waiver of pre-deposit and recovery of the amounts in dispute was stayed till disposal of the appeal.

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