2011 (9) TMI 747 - AT - Service Tax

Waiver of pre-deposit - Business Exhibition Service - ld. counsel for the assessee would argue that this cannot be termed as rendering of Business Exhibition Service as the objective is to showcase the achievements of the government, there is no running away from the fact that stalls are also allotted to small traders and artisans in which they sell/promote/showcase/market their product or service - stay granted partly.

Summary

Issues:
1. Application for waiver of pre-deposit of service tax.
2. Determination of whether the activity constitutes "Business Exhibition Service."
3. Direction for pre-deposit and stay of recovery pending appeal.

Analysis:
1. The judgment deals with an application for waiver of pre-deposit of service tax amounting to Rs. 10,80,558 along with interest. The demand was confirmed based on the assertion that the applicant was engaged in providing "Business Exhibition Service."

2. The Tribunal considered the nature of the applicant's activities, specifically the organization of an exhibition annually in Chennai's Island Grounds. While the applicant argued that the primary purpose was to showcase the State Government's achievements, stalls were also auctioned to small traders and artisans for promoting and selling their products. The Tribunal noted that despite the government's showcase, the stalls facilitated the marketing and promotion of goods/services by traders and artisans. Consequently, the Tribunal held that the applicant could be deemed to be providing "Business Exhibition Service," subject to service tax.

3. In light of the circumstances, the Tribunal directed the applicant to make a pre-deposit of Rs. 3,00,000 within eight weeks. Upon compliance with this directive, the pre-deposit of the remaining disputed amount would be waived, and the recovery thereof stayed pending the appeal. Failure to adhere to this direction would lead to the vacation of the stay and dismissal of the appeal without prior notice.

4. The judgment concluded by setting a deadline for compliance reporting on 30-11-2011, emphasizing the importance of fulfilling the pre-deposit requirement within the specified timeframe to maintain the stay on recovery pending the appeal process.