Service tax on foreign-port expense collections stayed; prima facie they related to services rendered outside India.

Amounts collected by a steamer agent on behalf of the vessel's master for terminal expenses at foreign ports were treated as prima facie relating to services to be rendered outside India, making the service tax demand unsustainable at the stay stage. On that basis, the Tribunal waived pre-deposit of the disputed dues and stayed recovery until 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 service tax demand raised on amounts collected for terminal expenses at foreign ports.

Analysis: The dispute related to amounts collected by the appellant, a steamer agent, on behalf of the master of the vessel for expenses to be incurred at foreign ports. On the material placed before it, the Tribunal found prima facie that such collections related to services to be rendered outside India and that the demand of service tax was not sustainable at the stay stage.

Outcome: Pre-deposit of the disputed dues was waived and recovery of the impugned demand was stayed until disposal of the appeal.

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