(1.) We have heard both sides on the application for waiver of pre -deposit of Service Tax of Rs. 1,18,61,529/ -, Education Cess of Rs. 2,22,308/ - and penalty of Rs. 100/ - per day under the provision of Section 76 and Rs. 1,20,83,837/ - under the provision of Section 78 of the Finance Act, 1994 (the period of dispute is 9 -7 -2004 to 31 -1 -2006) and find that a strong prima facie case has been made out by the applicants in the light of the Tribunal's order in the case of Welspitn Gujarat Stahl Rohren Ltd. v. CC and CE, Vadodara -II 2007 (5) S.T.R. 38 (Tri -Mum) holding that Service Tax is not payable on Business Auxiliary Services as prima facie, services rendered are provided by foreign companies in countries outside India and in the present case, prima facie, the service has been rendered outside India i.e. in Australia, Sri Lanka etc.
(2.) WE , therefore, waive the pre -deposit of amounts in question and stay recovery thereof pending the appeal. (Dictated and pronounced in open Court)