Prima facie exclusion of separately invoiced food and beverage charges supported unconditional stay relief under service tax exemption.

Unconditional stay was granted on a prima facie basis where food and beverage charges were separately invoiced and sales tax or VAT had been paid on those supplies, supporting exclusion under Notification No. 12/03-ST. The tribunal treated the appellant's reliance on favourable authorities, together with the High Court's stay of an adverse earlier view in the appellant's own case and restraint on coercive steps, as sufficient for interim protection. The document emphasises that conflicting precedents did not defeat stay relief where the available materials showed a strong prima facie case.

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Issues: Whether unconditional stay of the demand should be granted on the basis of the appellant's prima facie case, having regard to separate invoicing for food and beverages, payment of sales tax on such supplies, and the conflicting precedents relied upon by the parties.

Analysis: The available decisions supporting exclusion of separately invoiced food and beverage charges, along with payment of VAT thereon, indicated a strong prima facie case for the appellant under Notification No. 12/03-ST. The adverse Tribunal view in the appellant's own earlier case had been stayed by the High Court, and coercive steps were restrained. In these circumstances, the later stay orders and the supporting authorities were treated as sufficient to justify interim protection.

Conclusion: The appellant was found to have made out a good prima facie case, and the stay petition was allowed unconditionally.

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