ORDER
M.V. Ravindran, Member (J)
1. The application is filed by the applicant for granting waiver of pre-deposit of amount on service tax confirmed and the penalties imposed.
2. Considered the submissions made by both sides and perused the records.
3. Confirmation of the demand has arisen on the ground that the applicant is providing “Market Research Agency Services”. It is the allegation by the Revenue that the applicant is providing services regarding research of the product for the foreign company and reporting him the results which has been arrived at by them, hence services are falling under ‘Market Research Agency Services’. We find the payment received in India is in convertible foreign exchange may get covered under Notification No. 6/99. We find that the ld. Commissioner’s order seems to indicate that the applicant have been providing the services of Research of the products marketed by the client and they were submitting the report regarding the joint venture between the upcountry party and owner of the company. In an identical issue in respect of ‘Technical Testing and Analysis Service’ this bench vide Order No. S/13/CSTB/2008/C-II dated 5.12.07 came to the conclusion that the services rendered to the foreign company and getting paid in foreign exchange will be eligible for exemption under Notification No. 6/99 and subsequently by Notification No. 21/03.
4. As such considering the fact that the applicant had already deposited Service Tax amount of Rs. 58,59,674/- and contesting the same as being not leviable and also considering the fact that for the services rendered by them they got paid is foreign exchange, we find that the applicant has made out a prima facie case for waiver of pre-deposit of amounts involved. Accordingly, the application for waiver of pre-deposit of amounts is allowed and recovery thereof stayed till the disposal of the appeal.
(Dictated in Court)
