2011 (4) TMI 912 - AT - Service Tax

Manpower Recruitment or Supply Agency - waiver of the pre-deposit - Application of stay - Held that - The issue being highly arguable one and is not free from doubt thus in order to arrive at correct conclusions, the matter needs to be considered from various angles, evidences on records and the legal submissions made by the assessee. Direct both the parties involved to pre-deposit an amount of Rs.60,00,000/- individually within a period of eight weeks from today and report compliance

Summary

Issues:
Taxability of services provided under 'Manpower Recruitment or Supply Agency'

Analysis:
The appellants filed stay petitions seeking waiver of pre-deposit amounts related to Service Tax, interest, and penalties. The issue at hand was the taxability of services provided by the appellants under the category of 'Manpower Recruitment or Supply Agency'. The adjudicating authority had confirmed the demand under this category, while the appellants argued that they also provided other services like cleaning, cargo handling, housekeeping, and security services, which were not considered. The appellants had made partial deposits during the proceedings. The JCDR opposed remanding the matter, stating that the appellants should deposit the entire confirmed Service Tax amounts as they had allegedly suppressed the value and were liable under 'Manpower Recruitment or Supply Agency'.

Upon hearing both sides and reviewing the records, the Tribunal found the issue to be whether the appellants were indeed providing services under 'Manpower Recruitment or Supply Agency'. The Tribunal considered this issue arguable, noting detailed findings by the adjudicating authority that suggested the appellants may have only provided services under this category. The Tribunal concluded that the issue was not free from doubt and required further examination from various perspectives, including evidence and legal submissions. Therefore, the Tribunal directed the appellants to pre-deposit specific amounts within eight weeks and report compliance. Upon compliance, the applications for waiver of pre-deposit were allowed, and recovery stayed until the appeals' final disposal.