Tribunal acknowledges appellant's statutory functions, waives pre-deposit, grants stay on recovery.

The Tribunal acknowledged the appellant's performance of statutory functions and potential exclusion from Business Support Service. Recognizing the appellant's autonomous status and statutory functions, the Tribunal waived the pre-deposit requirement and granted a stay on recovery during the appeal process.

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Issues:
Whether the appellant, an autonomous society under the Societies Registration Act, 1860, is liable to pay service tax on charges for certification of exports and other functions provided to Software Technology Park (STP) units under the STP scheme.

Analysis:
The appellant, established to promote the STP scheme, provides various services to STP units, including certification of exports based on SOFTEX forms. The dispute arose regarding the liability to pay service tax on these charges, leading to a demand of Rs. 5,15,53,520 for the period 2007-08 to 2011-12, along with penalties.

The Department argued that the appellant's activities fall under Business Support Service, as they assist software exporters, and cited the withdrawal of a relevant circular. It was noted that the appellant operates under the STP scheme, providing services for a fee, and is not a government department. The Department contended that the fees collected are not compulsory levies and are not deposited into the Government Treasury.

The appellant argued that their functions are statutory under the Foreign Trade Policy and Foreign Exchange Management Act, and they act as an agent of the RBI for certifying SOFTEX forms. They claimed that the fees collected are controlled by the Ministry of Electronics and Information Technology, indicating statutory functions.

The Tribunal found the issue debatable, acknowledging the appellant's performance of statutory functions and the potential exclusion from Business Support Service. Recognizing the appellant's autonomous status and statutory functions, the Tribunal waived the pre-deposit requirement and granted a stay on recovery during the appeal process.

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