Prima facie case for interim relief on Computer Linkage Charges led to waiver of pre-deposit and stay of recovery.

At the stay stage, the Tribunal treated the demand of service tax, interest and penalties on Computer Linkage Charges as debatable because the appellant said it merely collected those charges from clients and remitted them to the Commodity Exchange. On the material available, neither side could show whether service tax had already been levied on the underlying service at the Commodity Exchange level, and the collection and remittance of the charges was therefore found, prima facie, not to fall within Stock Broker Services. A prima facie case for interim relief was established, so waiver of pre-deposit and stay of recovery were granted pending 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 demanded service tax, interest and penalties on Computer Linkage Charges.

Analysis: The dispute was treated as debatable at the stay stage because the appellant contended that it had merely collected Computer Linkage Charges from clients and remitted the same to the Commodity Exchange. It was also noted that, on the material before the Tribunal, neither side could show whether any service tax had been levied on the Commodity Exchange for the underlying service. On this basis, the collection and remittance of the charges was held, prima facie, not to fall within Stock Broker Services, and the appellant was found to have established a prima facie case for interim relief.

Conclusion: Waiver of pre-deposit was granted and recovery of the demanded amounts was stayed till disposal of the appeal.

Ratio Decidendi: At the interim stage, where the assessee shows that the disputed amount is merely collected and remitted charges and the levy itself appears debatable, waiver of pre-deposit and stay of recovery may be granted on a prima facie case.

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