Out-bound tour activities and service tax: pre-deposit waived and recovery stayed on a prima facie view.

On a prima facie appraisal, out-bound tour arrangements were treated as relating mainly to overseas coordination rather than taxable tour operator service, and the Board circular treating out-bound tours as outside service tax coverage was noted. The fact that service tax had already been paid on airfares booked under air travel services also supported the interim view. On that basis, pre-deposit of the demand was waived and recovery of the disputed amount was stayed pending disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery in respect of the demand confirmed on the footing that out-bound tour activities fell within the taxable category of tour operator services.

Analysis: On a prima facie appraisal of the materials, the planning and arrangements were found to relate mainly to out-bound tours and to involve coordination with agencies outside India. The Board's circular treating out-bound tours as outside the purview of service tax was also noted. It was further observed that service tax had already been paid on the airfares booked under air travel services.

Conclusion: Pre-deposit of the dues was waived and recovery of the impugned demand was stayed till disposal of the appeal.

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