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Issues involved: Condonation of delay in filing appeal, applicability of retrospective exemption to maintenance and repair services of lifts/elevators in Naval buildings, waiver of pre-deposit, liability of Service Tax on services provided to immovable property.
Condonation of Delay: The appellant sought condonation of delay of 682 days in filing the appeal against the demand of Service Tax with interest and penalty imposed on them for providing maintenance and repair services of lifts/elevators in Naval buildings. The appellant claimed they did not file the appeal earlier due to a bona fide belief that they would not be liable to pay duty, based on advice from the Navy regarding the matter being under consideration of the Finance Ministry. The Tribunal, considering the circumstances and the retrospective exemption granted, condoned the delay in the interest of justice. Applicability of Retrospective Exemption: The issue revolved around whether the maintenance and repair services of lifts/elevators provided by the appellant to immovable property, namely Naval buildings, were liable to Service Tax. The appellant argued that lifts/elevators are immovable property, citing a decision of the Bombay High Court, and therefore, the Service Tax liability arose from 16-6-2005, which was exempted retrospectively. The Tribunal agreed with this argument and allowed the appeal, stating that services rendered to immovable property were not liable to Service Tax prior to 16-6-2005, and exemption was granted retrospectively post that date. Waiver of Pre-deposit: Considering the settled issue of retrospective exemption and the nature of services provided by the appellant, the Tribunal granted waiver of pre-deposit and proceeded to decide the appeal on its merits without requiring any pre-deposit from the appellant. Liability of Service Tax on Services to Immovable Property: The Tribunal acknowledged that the work undertaken by the appellant constituted maintenance and repair services of lifts/elevators in Naval buildings, which were deemed as immovable property. Relying on the decision of the Bombay High Court, the Tribunal concluded that services rendered to immovable property were not subject to Service Tax before 16-6-2005, and post that date, retrospective exemption was granted for such services provided to non-commercial buildings of the Government. Consequently, the appeal was allowed in favor of the appellant with any consequential relief granted to them. Separate Judgment: No separate judgment was delivered by the judges in this case.
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