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2014 (1) TMI 200 - AT - Service TaxWaiver of pre deposit - Reverse charge mechanism - Demand of service tax - Arrangement for the external commercial borrowings - Banking and Financial services - Held that - appellant had contracted with the upcountry party for the purpose of raising external commercial borrowings for setting up a unit in Special Economic Zone. It is also undisputed that the said external commercial borrowings could not be raised and arrangement had to be cancelled and the appellant has received the amount back from the agency to whom they had given advance. Be that as it may we find that Notification No. 4/2004-S.T. specifically discuss about the exemption of taxable service of any description to a developer of Special Economic Zone or any unit in any Special Economic Zone for consumption of the services within such Special Economic Zone. It is undisputed that external commercial borrowing was for the purpose of developing a unit in SEZ; the appellant has made out a strong prima facie case for waiver of pre-deposit of amounts involved - Stay granted.
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