Prima facie taxability challenge secured waiver of pre-deposit and stay of recovery pending appeal.

A prima facie challenge to the taxability of consulting engineer service, transfer of know-how, technical assistance and royalty supported waiver of pre-deposit in an appeal arising from a revisional order under the Finance Act, 1994. On that footing, the Tribunal granted relief from deposit of tax and penalties and stayed recovery until disposal of the appeal.

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Issues: Whether the appellant was entitled to waiver of pre-deposit and stay of recovery pending disposal of the appeal.

Analysis: The appeal arose from an order passed in exercise of suo motu revisional power under Section 84 of the Finance Act, 1994. On the appellant's challenge to taxability of consulting engineer service, transfer of know-how, technical assistance and royalty, the Tribunal recorded that a prima facie case had been made out for waiver of pre-deposit.

Outcome: Pre-deposit of tax and penalties was waived and recovery was stayed till disposal of the appeal.

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