Prima facie case for service tax stay rejected where invoices and receipts did not support reliance on the Board circular.

At the stay stage, the assessee failed to establish a strong prima facie case against the service tax demand because the claimed reliance on the Board circular was not supported by matching invoices, payment receipts, or the required documents. The circular was therefore treated as prima facie inapplicable for interim relief. Issues relating to classification under Business Auxiliary Service and taxability of reimbursements were left open for final hearing. Partial stay was granted on condition of a reduced pre-deposit, with waiver of the balance and stay of recovery upon compliance.

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Issues: Whether, at the stay stage, the assessee had made out a prima facie case against the service tax demand so as to warrant partial waiver of pre-deposit and stay of recovery.

Analysis: The assessee was admittedly carrying out work for advertising agencies. The claimed reliance on the Board's circular could not be accepted at this stage because the invoices and payment receipts were not shown to correspond, and the necessary documents were not produced. On that basis, the circular was held prima facie inapplicable. The other objections relating to Business Auxiliary Service and tax on reimbursements were left for consideration at final hearing.

Conclusion: The assessee was granted only partial relief by way of a direction to pre-deposit a reduced amount, with waiver of the balance and stay of recovery upon compliance.

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