Export-linked service tax waiver granted for rent-a-cab services used by units exporting services.

Rent-a-cab services supplied to 100% EOU/STPI units for use in connection with exported services were treated as raising a prima facie case against service tax liability, relying on the Board circular dated 25/04/2003 that secondary services used in export activity should not attract tax when the primary services are exported. In the absence of any contrary consideration of the supporting certificates on record, unconditional waiver of pre-deposit was granted and recovery of the adjudged dues was stayed pending appeal.

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Issues: Whether the appellant had made out a prima facie case for unconditional waiver of pre-deposit and stay of recovery during pendency of the appeal.

Analysis: The appellant's rent-a-cab services were provided to 100% EOU/STPI units for use in connection with services exported by those units. The Board's circular dated 25/04/2003 was relied upon to support the position that secondary services used for export of services would not attract service tax when the primary services were exported. On that basis, and in the absence of a contrary consideration of the supporting certificates placed on record, the Tribunal found a prima facie case in favour of the appellant.

Conclusion: Unconditional waiver from pre-deposit was granted and recovery of the adjudged dues was stayed during pendency of the appeal.

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