Small service provider exemption excludes already exempt service value; catering meals may still qualify for abatement with incidental tea and snacks.

For interim relief, exempted service value was excluded from the aggregate turnover computation under the small service provider exemption, and catering activity directed to providing meals was treated as eligible for abatement despite incidental tea and snacks. The tribunal found a strong prima facie case on this reading of the exemption notifications and waived pre-deposit, granting stay of recovery during pendency of the appeal.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery by contending that the aggregate value for the small service provider exemption was to be computed after excluding exempted value and after allowing abatement in respect of catering services.

Analysis: The exemption notifications were read together and it was noted that the value of services already exempted by other notifications was not to be included for computing the aggregate value under the small service provider notification. On the facts, the catering activity was treated as service of providing meals to employees, with tea and snacks being incidental and not the main service. The contention that abatement could not be allowed because tea and snacks were also served was therefore rejected for the limited purpose of interim relief.

Conclusion: The appellants were held to have a strong prima facie case, and pre-deposit was waived with stay of recovery during the pendency of the appeal.

Ratio Decidendi: For interim relief, exempted service value is excluded from the aggregate turnover computation under the small service provider exemption, and catering activity directed to providing meals may qualify for abatement notwithstanding incidental service of tea and snacks.

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