Cross-border testing services and interim stay granted where testing appeared to be performed outside India.

Service tax on alleged technical testing and analysis services was examined on a prima facie basis in stay proceedings. Because the products were tested outside India and the test report was received by the applicant's head office in France, the service appeared to have been provided outside India. That factual position supported interim relief, and waiver of pre-deposit of service tax, interest and penalty was granted with recovery stayed pending the appeal.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery in a service tax dispute concerning alleged receipt of technical testing and analysis services from a foreign service provider.

Analysis: The products were tested outside India and the testing report was received by the applicant's head office in France. On a prima facie view, the service appeared to have been provided outside India. The applicant therefore showed a strong case for interim relief in the stay proceedings.

Conclusion: Waiver of pre-deposit of service tax, interest and penalty was granted and recovery was stayed during pendency of the appeal.

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