Prima facie coverage under interior decorator service not established, so pre-deposit was waived and recovery stayed.

Composite interior-related works including civil work, false ceiling, carpentry, painting, plumbing and electrical work, carried out under architects' or consultants' plans, were not shown on the available material to fall prima facie within the statutory definition of interior decorator service. In that position, the tribunal applied the view that where taxable coverage is not clearly established at the pre-deposit stage, waiver may be granted. The applicants were therefore entitled to waiver of pre-deposit and stay of recovery pending appeal.

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Issues: Whether the applicants were required to pre-deposit the service tax and penalties demanded on the footing that their activities amounted, prima facie, to interior decorator service under the relevant definition.

Analysis: The applicants' work comprised civil work, false ceiling work, carpentry, painting, plumbing, electrical work and other interior-related work carried out as per plans and designs supplied by architects or consultants. The question was whether such activity could, at first sight, be treated as service relating to beautification of spaces so as to fall within the statutory definition invoked by the department. On the material placed, the activity was not shown to be clearly covered by that definition. The order also noted a prior tribunal view granting waiver where similar work included civil and plumbing work and manufacture of wooden furniture, holding that the activity was not prima facie covered by the interior decorator entry.

Conclusion: The applicants were entitled to waiver of pre-deposit and stay of recovery pending appeal.

Ratio Decidendi: Where the activity shown is composite interior-related work including civil and allied works, and it is not prima facie established that the service falls within the defined taxable category, pre-deposit may be waived and recovery stayed.

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