TMI Blog2012 (9) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... d analysis also made applicable in respect of testing undertaken for the purpose of clinical testing of drugs and formulations - Show Cause Notice was issued on 3-4-2007 i.e. after the introduction of Explanation to Section 65 (106) of the Act i.e. on 1-5-2006. The demand is from the period 1-7-2003 - applicants had a strong case for waiver of pre-deposit – pre-deposit waived - ST/75 and 95/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the applicants are liable to Service tax in respect of technical testing and analysis service. 2. The contention of the applicants is that only with effect from 1-5-2006 an Explanation is added to Section 65(106) of the Finance Act, 1994. By adding this Explanation, the activities of technical testing and analysis also made applicable in respect of testing undertaken for the purpose of cli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Hon ble Gujarat High Court vide order dated 31-3-2011. 4. The Revenue relied on the decision of the Hon ble Supreme Court in the case of Union of India v. West Coast Paper Mills Ltd. - 2004 (164) E.L.T. 375 (S.C.) and other decisions of the Tribunal whereby the same has been followed to submit that once the appeal is admitted the correctness or otherwise of judgment of the lower authorit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal in the case of B.A. Research India (supra) held that the same is not clarificatory in nature and the assessee is liable to pay Service tax only with effect from 1-5-2006. The other two Tribunal decisions relied on by the Revenue are in respect of the applications for waiver of pre-deposit of dues and the Tribunal taken a view that prima facie the Explanation is clarificatory in nature. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03. In these circumstances, we are unable to take a different view. Therefore, prima facie the applicants had a strong case for waiver of pre-deposit. Therefore, waiver of pre-deposit of Service tax, interest and penalty is granted and stay the recovery during the pendency of the appeals. 8. Stay petitions are allowed. However, both sides are at liberty to mention after the decision of the Hon b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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