Interim stay against service tax demand refused where no case for interference was shown on the material placed

Interim stay of an order setting aside a service tax demand was declined because the material placed at that stage did not justify interference. The lower authority had proceeded on the view that the transport service was provided by lorry owners, not by a goods transport agency, and that basis was not found fit for disturbance on the limited stay application. As a result, the Revenue's stay petition was rejected and the assessee's position remained undisturbed at the interim stage.

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Issues: Whether stay of operation of the impugned orders vacating service tax demand was warranted.

Analysis: The impugned orders had set aside the demand on the footing that the service was provided by lorry owners and not by a goods transport agency. On the limited question of stay, no ground was found to interfere with those orders at that stage.

Conclusion: Stay of the impugned orders was declined and the Revenue's stay petition was rejected.

Final Conclusion: The demand already set aside by the lower authority was not stayed, and the assessee's position remained undisturbed at the interim stage.

Ratio Decidendi: Interim stay will not be granted where the impugned order does not disclose a case for interference on the material placed at that stage.

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