Vocational training exemption claim accepted prima facie, leading to waiver of pre-deposit and stay of recovery during appeal.

Courses in fashion technology, graphic art, media communication and digital communication were treated as prima facie vocational training, bringing the applicants within the scope of Notification No. 24/2004-S.T. on the material then available. On that basis, the tribunal found a strong prima facie case for exemption and did not insist on pre-deposit at the appeal stage. Recovery was stayed during pendency of the appeal, reflecting interim protection pending determination of the exemption claim.

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Issues: Whether the applicants were entitled to exemption under Notification No. 24/2004-S.T. dated 10-9-2004 as a vocational training institute and consequently to waiver of pre-deposit and stay of recovery during the appeal.

Analysis: The applicants were running courses in fashion technology, graphic art, media communication and digital communication. On the material placed, the tribunal found a strong prima facie case that the courses were vocational in nature and that the exemption notification could apply. In view of the prima facie entitlement, the demand of pre-deposit was not insisted upon at this stage and recovery was ordered to remain stayed during pendency of the appeal.

Conclusion: The applicants were granted waiver of pre-deposit of the entire service tax, interest and penalties, and recovery was stayed pending the appeal.

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