Prima facie service classification and notification benefit supported waiver of pre-deposit and stay of recovery.

Repair, renovation and alteration of existing office and commercial premises were treated, prima facie, as the relevant taxable service, and there was no material showing completion or finishing services of the kind relied on by the Revenue to deny Notification No. 1/2006-ST. On that basis, the applicants established a prima facie case for the notification benefit and for waiver of pre-deposit and stay of recovery, and the stay petition was allowed.

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Issues: Whether the applicants were entitled to waiver of pre-deposit and stay of recovery in view of their claim that the impugned service fell within the relevant taxable category and that the benefit of Notification No. 1/2006-ST dated 01.03.2006 was available.

Analysis: The dispute related to the period 16.06.2005 to 31.03.2008. The activity described by the applicants was repair, renovation and alteration of existing office and commercial premises such as banks and call centres. On the material before the Tribunal, there was no evidence that the applicants had undertaken completion or finishing services of the kind relied upon by the Revenue to deny the notification benefit. The activity was treated, prima facie, as falling within the relevant category supporting the applicants' claim for partial tax treatment under the notification.

Conclusion: The applicants made out a prima facie case for waiver of pre-deposit and stay of recovery, and the stay petition was allowed.

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