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Issues involved:
The issues involved in the judgment are waiver of pre-deposit of service tax demand confirmed for testing, inspection, and certification services under reverse charge mechanism, and waiver of pre-deposit of service tax confirmed for exhibition services availed outside India. Testing, Inspection, and Certification Services: The applicants availed services from the Food and Drugs Administration of the United States of America (US FDA) under the category of Technical Inspection and Certification Service. They argued that since all the services were availed and performed outside India, they should not be liable to pay service tax as per the Taxation of Service Rules, 2006. The Tribunal found that all services were indeed provided outside India, leading to the prima facie case for a total waiver of pre-deposit of service tax, interest, and penalty. Consequently, the requirement of pre-deposit was waived, and recovery stayed during the appeal process. Exhibition Services: Regarding the exhibition services, the applicants sought waiver of pre-deposit based on Board Circular No.354/11/2011-TRU, which clarified that hiring premises and arranging installation of stalls outside India for exhibition services are exempt from service tax. The Tribunal considered this submission and observed that since the exhibition services were also availed outside India, the applicants had made out a case for a total waiver of pre-deposit of service tax, interest, and penalty. Consequently, the requirement of pre-deposit was waived, and recovery stayed during the pendency of the appeals. Conclusion: In both cases, the Tribunal granted the waiver of pre-deposit of service tax, interest, and penalty as the services were availed and performed outside India, aligning with the provisions of the Taxation of Service Rules, 2006 and relevant Board Circulars.
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