Mixed-performance inspection services supported export treatment and justified full waiver of pre-deposit pending appeal.

Services involving inspection, review, transaction centre work and follow-up were examined for prima facie classification as Technical Inspection and Certification service and for export treatment where performance occurred both in India and abroad. The contract involved inspection, verification of standards, report preparation and periodic inspection across a mixed sequence of activities, with the show-cause notice itself acknowledging performance in India and transmission of results to the foreign recipient. On that basis, the service was treated as not confined to India and as falling within the framework for services partly performed inside and outside India, supporting export treatment and a strong prima facie case for full waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether the services of inspection, review, transaction centre work and follow-up services were, on the facts, prima facie classifiable as Technical Inspection and Certification service and, if so, whether the service was partly performed in India and partly outside India so as to support export treatment and justify full waiver of pre-deposit and stay of recovery.

Analysis: The service contract was directed by the overseas principal, but the inspection, verification of standards, preparation of reports and periodical inspection were carried out through a sequence of activities in India as well as abroad. The show-cause notice itself acknowledged that the inspection activity was performed in India and the result was sent to the foreign recipient. On that basis, even assuming the classification alleged by the department, the service was not confined to India and appeared to fall within the export framework for services partly performed inside and outside India. The order also relied on the Tribunal's earlier view that such mixed performance supported export treatment.

Conclusion: The appellant made out a strong prima facie case and was granted full waiver of pre-deposit and stay against recovery during the pendency of the appeal.

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