Job work taxability and exemption claim under service tax notification did not justify complete waiver of pre-deposit.

Job work activity was examined for taxability under Business Auxiliary Service, together with the claimed exemption under Notification No. 8/2005-S.T. and the Revenue's objection based on return of goods to a 100% EOU and Notification No. 24/2003-C.E. The Tribunal treated the exemption and taxability questions as contentious at the interim stage, but found that a case for complete waiver of pre-deposit was not made out. Partial pre-deposit was directed, and the balance of the service tax and penalty demand was stayed pending disposal of the appeals.

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Issues: Whether the appellants had made out a prima facie case for total waiver of pre-deposit and stay of recovery in respect of the service tax and penalty demands, including their claim to exemption under Notification No. 8/2005-S.T. dated 01-03-2005.

Analysis: The dispute involved the taxability of the job work activity under Business Auxiliary Service and the claimed exemption under the cited notification. The Tribunal found that the issues raised were contentious and that a case for complete waiver of pre-deposit was not established at the interim stage. It also noticed the Revenue's objection based on the return of goods to a 100% EOU and the effect of Notification No. 24/2003-C.E. dated 31-03-2003.

Conclusion: Total waiver was declined and a partial pre-deposit was directed, with the balance demand stayed during the pendency of the appeals.

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