Prima facie waiver of pre-deposit granted where demand shifted to a new service classification without prior notice.

A prima facie case for waiver of pre-deposit was found where the show cause notice classified the services only as consulting engineering services for the entire period, but the impugned order later shifted part of the demand to Erection, Commissioning and Installation Services without prior notice on that alternative classification for the relevant period. Reliance was also placed on the Board's circular dated 08.08.07, which indicated that such services would be classifiable under Erection, Commissioning and Installation Services only from 10.09.04. On that basis, stay of recovery of the service tax demand was granted.

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Issues: Whether the appellant made out a prima facie case for waiver of pre-deposit and stay of recovery of the service tax demand.

Analysis: The show cause notice proceeded on classification of the services under consulting engineering services for the entire period, while the impugned order shifted part of the demand to Erection, Commissioning and Installation Services for a later period. The appellant was not put on notice regarding that alternative classification for the relevant period. The Board's circular dated 08.08.07 was also relied upon to indicate that such services would be classifiable under Erection, Commissioning and Installation Services only from 10.09.04.

Conclusion: The appellant established a prima facie case for waiver of pre-deposit and stay of recovery was granted.

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