Abatement under service tax notification requires sale of materials; absence of such sale defeats full waiver of pre-deposit.

Abatement under Notification No. 19/2003-S.T. applies where materials are sold, but the record did not show any sale of materials by the service provider to the recipient. The work was treated as erection of piping work, with pipes supplied by the recipient at its factory premises, so the appellant could not establish a prima facie basis for complete waiver of pre-deposit in respect of the Erection, Commissioning & Installation Services demand. Partial pre-deposit was therefore directed, and recovery of the balance was stayed on compliance.

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Issues: Whether the appellant had made out a prima facie case for complete waiver of pre-deposit by claiming abatement under Notification No. 19/2003-S.T. in respect of services classified as Erection, Commissioning & Installation Services.

Analysis: The notification grants abatement where materials are sold, but the record did not show any sale of material by the appellant to the service recipient. The main work was erection of piping work, while the pipes were supplied by the recipient in its factory premises. The reliance placed on other Tribunal decisions did not persuade the Tribunal at the stay stage, as the issue there was treated in a different context.

Conclusion: The appellant was held not to have established a prima facie case for full waiver of the service tax demand; partial pre-deposit was directed and recovery of the balance was stayed on compliance.

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