Prima facie exclusion from advertising agency service justified waiver of pre-deposit and stay of recovery pending appeal.

Dealers or agents promoting the appellants' products were alleged to be advertising agents, but at the prima facie stage their activities were found not to fall within the category of advertising agency. On that basis, the appellants established a prima facie case for interim protection pending appeal, justifying waiver of pre-deposit of the service tax, interest and penalties. Recovery was stayed during the pendency of the appeal.

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Issues: Whether the appellants made out a prima facie case for waiver of pre-deposit and stay of recovery of the service tax demand, interest and penalties on the allegation that the dealers or agents promoting the appellants' products were advertising agents.

Analysis: The activities of the dealers or agents were found, at the prima facie stage, not to fall within the category of advertising agency. On that basis, the appellants were held to have established a prima facie case warranting protection during the pendency of the appeal.

Outcome: Waiver of pre-deposit of the service tax, interest and penalties was granted and recovery was stayed during the pendency of the appeal.

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