Input service interpretation supported waiver of pre-deposit and stay of recovery where services were prima facie connected.

Interpretation of the term "used" in the input service definition was central to the pre-deposit dispute, with CHA, tour operator and courier services treated as prima facie connected to the appellant's output services. Because the period in issue was much earlier than the show cause notice and the matter was viewed as one of statutory interpretation, a prima facie case was found in favour of the appellant, including on limitation. Waiver of pre-deposit was granted and recovery was stayed pending disposal of the appeal.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery pending appeal.

Analysis: The dispute turned on the meaning of "used" in the definition of input service and whether services such as CHA, tour operator and courier services were prima facie connected with the output services rendered by the appellant. The period involved was much earlier than the show cause notice, and the matter was viewed as one of interpretation. On that basis, a prima facie case was found in favour of the appellant, including on limitation.

Conclusion: Waiver of pre-deposit was granted and recovery was stayed during the pendency of the appeal.

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