Prima facie exemption claim on transport charges below the threshold justified waiver of pre-deposit and stay of recovery.

The applicants established a prima facie case for interim relief because the invoices for transport service showed charges below the notification threshold, making the claim for exemption under Notification No. 34/2004-S.T. supportable at the stay stage. On that basis, pre-deposit of service tax and penalty was waived and recovery was stayed pending the appeal. The order is confined to the interim assessment of the exemption claim and does not decide the final merits.

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Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery in respect of the service tax demand after denial of the benefit of Notification No. 34/2004-S.T.

Analysis: The invoices issued by the service provider showed that the amount charged for the transport service was less than Rs. 1,500. On that basis, the claim that the exemption notification applied was found to be supportable at the interim stage, so the applicants established a prima facie case.

Conclusion: Pre-deposit of the service tax and penalty was waived and recovery was stayed during pendency of the appeal.

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