2011 (3) TMI 1049 - AT - Service Tax

Waiver of pre-deposit - Club or Association Service - Held that - If the appellant in fact has deposited Rs.31 lakhs (approximately) towards service tax liability, then the said amount can be considered as enough deposit to hear and dispose the appeals - Subject to such report being filed, applications for waiver of pre-deposit of balance amounts involved allowed and stay recovery thereof till the disposal of the appeals - Appeal is disposed of

Summary

Issues:
- Stay petitions for waiver of pre-deposit of service tax, interest, and penalty amounts in two cases.
- Interpretation of service tax liability for "Club or Association Service" related to various receipts.
- Verification of the amount deposited by the appellant towards service tax liability.
- Consideration of sale proceeds of sports and other goods as services under "Club or Association Service."

Analysis:
The judgment by the Appellate Tribunal CESTAT, Bangalore, involved two stay petitions seeking a waiver of pre-deposit of service tax, interest, and penalty amounts in two separate cases. The demand for service tax and penalties arose due to the appellant's failure to discharge the service tax liability related to contributions, guest fees, sale proceeds of goods, guest room rent, user charges, and miscellaneous receipts received from members for "Club or Association Service."

During the hearing, the appellant's counsel mentioned that a substantial amount had been deposited towards the service tax liability, but failed to produce evidence at that moment. The Tribunal, after considering both sides' submissions, found that if the appellant had indeed deposited a significant amount towards the service tax liability, it could be considered sufficient for hearing and disposing of the appeals. Notably, the Tribunal ruled that the sale proceeds of sports and other goods could not be categorized as services under "Club or Association Service."

The Tribunal directed the Revenue to verify the amount claimed to have been deposited by the appellant and instructed them to file a report confirming the same. Pending the verification report, the Tribunal allowed the applications for waiver of pre-deposit of the remaining amounts and stayed the recovery until the appeals were disposed of. Additionally, the Registry was directed to connect the relevant appeal with the current ones for further proceedings and disposal.

In conclusion, the judgment addressed the issues of service tax liability under "Club or Association Service," verification of the amount deposited by the appellant, and the interpretation of certain receipts as services. The Tribunal's decision to allow the waiver of pre-deposit and stay recovery highlighted the importance of verifying the deposited amounts before proceeding with the appeals.