Interior decorator service classification failed where furniture manufacture and installation were only carried out to customer designs.

Activity involving manufacture and sale of furniture and fixtures, together with installation in accordance with customers' designs and drawings, was found prima facie not to fall within interior decorator service under Section 65(59) of the Finance Act, 1994. On that basis, the applicant established a prima facie case for waiver of pre-deposit of service tax, interest and penalty, and recovery was stayed during pendency of the appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery in respect of the demand raised by treating its activity as interior decorator service.

Analysis: The applicant's activity was stated to consist of manufacture and sale of furniture and fixtures, along with installation according to customers' designs and drawings. On that basis, the activity was found, prima facie, not to answer the definition of interior decorator service under Section 65(59) of the Finance Act, 1994.

Conclusion: The applicant made out a prima facie case for waiver of pre-deposit of service tax, interest and penalty, and recovery was stayed during the pendency of the appeal.

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