2014 (4) TMI 768 - AT - Service Tax

Waiver of pre-deposit - Technical Testing and Analysis Service - Held that - Prima facie, the appellant was exporting service and hence not liable to pay service tax by virtue of exemption available under Rule 3(1)(ii) of the Export of Services Rules, 2005. We further note that, on similar sets of facts, this Bench granted waiver of pre-deposit and stay of recovery in the case of M/s Lotus Lab Pvt. Ltd. vs. Commissioner of Service Tax, Bangalore (2013 (12) TMI 149 - CESTAT BANGALORE). The appellant s case is also supported squarely by Commissioner of Service Tax, Ahmedabad vs. B.A. Research India Ltd. 2009 (11) TMI 213 - CESTAT, AHMEDABAD wherein a similar service was found to have been exported by the assessee and, accordingly, held to be exempted from payment of service tax - Stay granted.

Summary

Issues: Waiver of pre-deposit and stay of recovery against adjudged dues for service tax and education cesses under "Technical Testing and Analysis Service" for the period from April 2010 to March 2011.

Analysis:
1. The appellant filed an application seeking waiver of pre-deposit and stay of recovery against the adjudged dues, including a demand of over Rs.3 crores for service tax and education cesses under the service category of "Technical Testing and Analysis Service" for the period from April 2010 to March 2011. It was noted that the appellant conducted testing and analysis of samples from foreign clients, with the results provided to the clients, and consideration received in convertible foreign currency. The Tribunal found that prima facie, the appellant was exporting services, making them exempt from service tax under Rule 3(1)(ii) of the Export of Services Rules, 2005. The Tribunal also referred to a previous case where waiver of pre-deposit and stay of recovery was granted in a similar situation. The appellant's case was further supported by a decision in Commissioner of Service Tax, Ahmedabad vs. B.A. Research India Ltd., where a similar service was considered exported and exempt from service tax. The opposing argument from the Superintendent (AR) referenced a different stay order, but the Tribunal found that it did not consider the relevant decision in the B.A. Research India Ltd. case.

2. The Tribunal, after considering the arguments and precedents, decided in favor of the appellant. It was ruled that there would be a waiver of pre-deposit and stay of recovery as requested by the appellant. The decision was pronounced and dictated in the open court, concluding the judgment on the matter.