Export of services in technical testing and analysis supports waiver of pre-deposit and stay against recovery.

Technical testing and analysis services supplied to overseas clients, with consideration received in foreign convertible currency and reports delivered outside India, were treated as prima facie satisfying the conditions for export of services. On that basis, the cited exemption under Notification No. 11/2007-S.T. was considered applicable to the facts, supporting a prima facie case on merits. The tribunal therefore waived the pre-deposit requirement and granted stay against recovery of the service tax dues during pendency of the appeal.

---

---

Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and grant of stay against recovery in respect of service tax demand on services rendered to clients abroad.

Analysis: The dispute concerned technical testing and analysis services provided to domestic clients as well as to clients located outside India. The appellants received consideration in foreign convertible currency and the reports were delivered to overseas clients. Reliance was placed on the view that delivery of the testing and analysis report to the client outside India is an essential part of the service and that such services satisfy the conditions governing export of services, with eligibility for exemption under Notification No. 11/2007-S.T. The cited decision was treated as applicable to the facts and as supporting a prima facie case on merits.

Conclusion: The requirement of pre-deposit was waived and stay against recovery of the dues was granted during the pendency of the appeal.

---