2013 (10) TMI 734 - AT - Service Tax

Valuation - inclusion of food value into the value of club services - Stay application - Waiver of pre deposit - Whether the value of the food items provided should be deleted from the gross value of the taxable service - Held that - it is appropriate to grant waiver of pre-deposit and stay of all further proceedings pursuant to the adjudication order as confirmed, on condition that the petitioner remits the assessed interest component on the service tax assessed within four weeks from today. - stay granted partly.

Summary

Issues:
1. Appeal against adjudication order for providing taxable Club Services.
2. Whether the value of food items provided should be excluded from the gross value of taxable service.
3. Granting waiver of pre-deposit and stay of further proceedings.
4. Requirement of remitting assessed interest component on service tax.
5. Consequences of non-compliance with the order.

Analysis:
1. The appeal was filed against the adjudication order confirming the provision of taxable Club Services and imposing service tax, interest, and penalties under Sections 76 and 78 of the Act. A small amount of service tax was remitted post the adjudication order, but there was no evidence of remittance of the interest component or penalties assessed. The appellant contested whether the value of food items provided should be excluded from the gross value of the taxable service.

2. Considering the arguable case presented by the appellant regarding the exclusion of the value of food items from the taxable service, the Tribunal decided to grant a waiver of pre-deposit and stay further proceedings on the condition that the assessed interest component on the service tax (excluding penalties) be remitted within four weeks. Failure to comply would result in the rejection of the appeal for non-pre-deposit.

3. The appellant's counsel acknowledged the order and agreed to inform the appellant about their obligations under the order. The stay application was disposed of accordingly, with the Tribunal emphasizing the importance of complying with the directive to remit the interest component within the specified timeline to avoid adverse consequences.

This detailed analysis of the judgment highlights the key issues addressed by the Tribunal, the decision made regarding the waiver of pre-deposit, and the importance of complying with the conditions set forth in the order to avoid dismissal of the appeal.