Unconditional stay on service tax demand for overseas-origin air travel, with no pre-deposit required at the stay stage.

Unconditional stay was granted against service tax, interest and penalties demanded on round-trip air tickets for Maldives-Trivandrum-Maldives travel because a subsequent order concerning the same assessee had taken the view that no service tax was payable where the air journey originated outside India. In that context, the Tribunal held that no pre-deposit should be required at the stay stage and allowed the stay petition without any deposit condition.

---

---

Issues: Whether unconditional stay could be granted against the demand of service tax, interest, and penalties arising from round-trip air tickets issued for Maldives-Trivandrum-Maldives travel.

Analysis: A subsequent order in respect of the same assessee had taken a contrary view and had held that no service tax was payable because the air journey originated outside India. In that background, the Tribunal found that the assessee should not be directed to deposit any amount at the stay stage.

Outcome: The stay petition was allowed unconditionally.

---