2013 (3) TMI 689 - AT - Service Tax

Waiver of pre-deposit - Management, Maintenance or Repair Service - the amounts are to be paid as Society Deposit and the promoters shall utilize the sum paid by the purchaser to the promoters for meeting all legal costs, charges and expenses including professional cost of the Solicitors / Advocates of the Promoters in connection with the formation of the aid Organisation, preparing its rules, regulations and byelaws and the cost of preparing the agreement - reliance placed in the case of M/s. Puravankara Projects 2009 (8) TMI 616 - CESTAT, BANGALORE , for waiver of pre-deposit, where on similar issue, the Tribunal has granted unconditional stay - pre-deposit waived - decided in favor of assessee.

Summary

Issues involved: Waiver of pre-deposit of service tax under 'Management, Maintenance or Repair Service' category and 'GTA service' category.

Analysis:

Issue 1: Waiver of pre-deposit under 'Management, Maintenance or Repair Service' category
The applicants sought waiver of pre-deposit of the demand confirmed against them for the period 16.6.2005 to 30.09.2007. The applicants had already deposited a certain amount along with interest. The representative for the applicants argued that the amount charged from flat owners for maintenance expenses was not part of taxable value as per CBEC circulars and, therefore, the demand was not sustainable. Referring to a previous case, the Tribunal observed that the payments were reimbursement of expenditure and not consideration for any service, leading to the grant of unconditional waiver of pre-deposit. Consequently, the waiver of pre-deposit of service tax under the 'Management, Maintenance or Repair Service' category, along with interest and penalty, was granted.

Issue 2: Waiver of pre-deposit under 'GTA service' category
The applicants were directed to deposit a specific sum under the 'GTA service' category. Upon compliance with this directive, interest and penalty would be waived, and recovery stayed during the appeal process. The Tribunal made this decision after considering the arguments presented by both sides.

In conclusion, the Tribunal granted the waiver of pre-deposit of service tax under the 'Management, Maintenance or Repair Service' category based on the precedent set in a previous case. Additionally, specific instructions were given regarding the deposit required under the 'GTA service' category. Compliance was to be reported by a specified date.