2007 (5) TMI 634 - AT - Service Tax

Summary

Issues involved: Determination of service tax liability u/s "Security Agency" for "Property Management Services" provided by the appellant.

Summary:
The appellant was required to pre-deposit service tax amount along with penalties for providing "Property Management Services." The Department initiated proceedings for recovery of service tax u/s "Security Agency" from a certain period. The appellant contended that they were registered u/s "Real Estate Agencies" and the service cannot be bifurcated. The appellant referred to a Ministry of Finance letter clarifying that a composite service should be treated as a single service based on the main service. The appellant argued that the show cause notice issued in retrospective effect was not sustainable. The appellant relied on various judgments to support their case.

The learned JDR reiterated the findings of the Commissioner in the impugned order. The Commissioner referred to the major service provided by the appellant as "Management of Immovable Properties." The Revenue initiated proceedings for recovery of service tax u/s "Security Agency," which is a part of the services under "Property Management Services." The Commissioner stated that such bifurcation cannot be done as per the Board's Circular. The stay application was allowed by granting waiver of pre-deposit, and the recovery was stayed till the disposal of the appeal.

In conclusion, the Tribunal found that the appellant had a strong case on merit regarding the determination of service tax liability for "Property Management Services" and granted a waiver of pre-deposit, staying the recovery till the appeal's disposal.