2011 (6) TMI 382 - AT - Service Tax

Waiver of pre-deposit - Commercial Training or Coaching Services - Held that - As decided in assessee s own case 2008 (10) TMI 148 - CESTAT BANGLORE it is not liable to pay the Service Tax under the category of Commercial Training or Coaching Services as they are registered Society. Be that as it may, with the retrospective amendment, the issue on merits would be against the assessee, but at the same time appellant s plea of limitation as they had a bonafide belief due to the decision of this Bench in their own case. The issue regarding the various other arguments raised to the fact that they are not liable to pay Service Tax would be looked into the same at the time of final hearing, at the same time the appellant s case is taxable within the limitation period from the date of issuance of show cause notice, thus direct the appellant to pre-deposit an amount of Rs. 9,06,937/- Service Tax liability on the Maintenance or Repair Service - Held that - As an amount of Rs. 3,26,856/- deposited by the appellant is sufficient enough to hear and dispose the appeal under this category - Hence, application for waiver of the amount involved under the head Maintenance or Repair Service is allowed and the recovery thereof stayed till the disposal of appeal.

Summary

Issues:
1. Waiver of pre-deposit for Commercial Training or Coaching Services
2. Waiver of pre-deposit for Maintenance or Repair Service

Analysis:
1. The appellant filed a stay petition seeking a waiver of pre-deposit for two amounts: one related to Commercial Training or Coaching Services and the other to Maintenance or Repair Service. The counsel for the appellant argued that for the demand raised under 'Commercial Training or Coaching Service,' the appellant, being a society, should not be covered under the said category. The counsel highlighted that a show cause notice was issued on 16.07.2009, making the demand within the limitation for the period April 2008 to March 31, 2009. The Tribunal noted that in a previous case for the Hyderabad Division, it was held that the appellant is not liable to pay Service Tax under 'Commercial Training or Coaching Services' due to being a registered society. However, with a retrospective amendment, the issue on merits would be against the assessee. The Tribunal directed the appellant to pre-deposit Rs. 9,06,937 within four weeks, considering it to be within the limitation period, and waived the pre-deposit of the balance amounts under this category pending appeal.

2. Regarding the 'Maintenance or Repair Service,' the appellant contended that the show cause notice was barred by limitation, and the demand within limitation amounted to Rs. 2,25,776. The appellant had already deposited Rs. 3,26,856, covering the entire Service Tax liability. The Tribunal found the deposited amount sufficient to hear and dispose of the appeal under this category. Consequently, the application for waiver of the amount involved under 'Maintenance or Repair Service' was allowed, and recovery was stayed pending the appeal's disposal.

In conclusion, the Tribunal disposed of the stay petition by directing the appellant to comply with the pre-deposit requirement for the Commercial Training or Coaching Services within a specified time frame and waived the pre-deposit for the Maintenance or Repair Service due to the sufficient deposit made by the appellant.