Export of services claim justified waiver of pre-deposit and stay on service tax recovery for canvassing activity.

Activity of canvassing purchase orders in India for an overseas parent was treated as a prima facie export of services, so the demand under Business Auxiliary Service was not shown to be taxable at the interim stage. On that basis, the Tribunal found a prima facie case for the appellants and granted waiver of pre-deposit and stay of recovery in respect of the balance Service Tax, education cesses, interest and penalties. The conclusion was supported by the Board's circular and prior Tribunal decisions.

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Issues: Whether the appellants were entitled to waiver of pre-deposit and stay of recovery in respect of the Service Tax, Education Cesses, interest and penalties demanded under Business Auxiliary Service on the basis of a prima facie case that the activity amounted to export of services.

Analysis: The appellants were canvassing purchase orders in India for their overseas parent company. On the material before it, the Tribunal found a prima facie case that the activity constituted export of services and was therefore not taxable. The conclusion was supported by the Board's circular and the cited Tribunal decisions.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellants in respect of the balance Service Tax, Education Cesses, interest and penalties.

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