2011 (5) TMI 549 - AT - Service Tax

Waiver of pre-deposit - Service Tax liability - Construction of Complex Service or Commercial or Industrial Construction Service - The demand has arisen on the ground that the appellant has taken advances from the buyers as a builder/developer - Held that - Services rendered by the appellant would be taxable from 1.7.2010 only and any demand prior to that period prima facie seems to be not sustainable - Since in the appellant s case unconditional waiver has been granted for an earlier period for the demand of Service Tax on identical set of facts, respectfully following the same, allow the applications for the waiver of pre-deposit of the amounts involved and stay the recovery thereof till the disposal of the appeal.

Summary

Issues: Stay petition for waiver of pre-deposit of Service Tax, interest, and penalties under the Finance Act, 1994 for the period from 1.4.2008 to 31.3.2009.

The judgment by the Appellate Tribunal CESTAT, Bangalore, involved a stay petition for the waiver of pre-deposit of Service Tax, interest, and penalties under the Finance Act, 1994 for the period from 1.4.2008 to 31.3.2009. The appellant, a builder/developer, had taken advances from buyers, leading to a demand for Service Tax liability under "Construction of Complex Service" or "Commercial or Industrial Construction Service." The appellant argued that a previous unconditional stay was granted for a similar period, and thus, the current demand should not be sustained. The JCDR supported the Adjudicating Authority's findings and highlighted the similarity in facts with the previous stay order.

Upon hearing both parties and examining the records, the Tribunal noted that the demand pertained to Service Tax under "Construction of Complex Service" or "Commercial or Industrial Construction Service" for the period from 1.4.2008 to 31.3.2009. Referring to a previous stay order, the Tribunal observed that services rendered by the appellant were taxable only from 1.7.2010 onwards. Given the previous unconditional waiver granted to the appellant for a similar demand on identical facts, the Tribunal decided to allow the waiver of pre-deposit and stayed the recovery of the amounts until the appeal's disposal. The Tribunal also directed that no refund claim be processed until the appeal's resolution and ordered the registry to link this appeal with a specific appeal number for reference.

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