Exemption scope for student study material cannot be narrowed by circular where notification imposes no text-book limit.

A circular could not narrow the scope of an exemption notification where the notification itself did not restrict relief to standard text-books. On that prima facie basis, study material supplied to students was treated as covered by the claimed exemption, and complete waiver of pre-deposit was granted with stay of recovery pending appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery in view of the claimed exemption for study material supplied to students, and whether the circular could restrict the scope of the exemption notification to standard text-books only.

Analysis: The exemption claimed was under the service tax notification governing sale or supply of goods, and the department relied on a circular stating that the benefit was available only for standard text-books. The Tribunal held prima facie that where the notification itself did not restrict the exemption to standard text-books, the scope of the notification could not be narrowed by the circular. On that basis, a prima facie case was made out for complete waiver of pre-deposit.

Conclusion: The applicant was entitled to waiver of pre-deposit and stay of recovery pending the appeal.

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