Service tax on reconditioning of used cars was rejected at the stay stage, as no service to another person was shown.

Service tax demand on the margin earned from reconditioning and sale of used cars was not shown, on a prima facie basis, to arise from service rendered to another person. The tribunal treated the activity as repairing purchased used cars rather than providing taxable service, and found no ground to interfere with the order vacating service tax and penalties at the stay stage. The Revenue's stay application was therefore dismissed as lacking merit, and the assessee's position was left undisturbed.

---

---

Issues: Whether the Revenue's stay application against the order vacating service tax and penalties was liable to be allowed.

Analysis: The demand had been raised on the margin earned from reconditioning and sale of used cars. On a prima facie view, repairing purchased used cars did not amount to rendering service to another person, and the impugned order therefore did not call for interference at the stay stage.

Conclusion: The stay application was dismissed as devoid of merits, in favour of the assessee.

---