2013 (10) TMI 1015 - AT - Service Tax

Vocational traning or not - commercial training on interior design - Commercial Training or Coaching Services - Waiver of pre deposit - Held that - Prima-facie, we find that the ld. Commissioner has taken into consideration the submissions of the assessee that the services rendered by them is not in the nature of vocational training and accordingly, they are not eligible to the exemption of Notification 9/2003-ST dated 20.06.2003 and also Notification 24/2004-ST dated 10.09.2004. The ld. Commissioner after narrating the facts and evidences on record, had come to a finding that the applicant had provided the commercial training and coaching services during the material period and they are not eligible for exemption for payment of service tax in terms of the aforesaid Notifications. Prima-facie, we do not find any contrary evidence is placed in their memo of appeal. We also find that the applicant is not serious in prosecuting their stay petition as well as the appeal. - stay granted partly.

Summary

Issues: Application for waiver of predeposit of service tax and penalty under Section 78 of the Finance Act, 1994.

The judgment pertains to an application for waiver of predeposit of service tax amounting to Rs.1.15 Crores and an equal penalty imposed under Section 78 of the Finance Act, 1994. The applicant failed to appear for multiple hearings despite notices. The Revenue argued that the services provided by the applicant, including Architect Services, Franchise Services, and Business Auxiliary Services, were taxable under Commercial Training or Coaching Services, for which the applicant did not obtain registration or pay service tax. The applicant claimed exemption under Notification No.9/2003-ST and Notification No.24/2004-ST, stating that their services were vocational training. The Commissioner found the applicant liable for service tax and denied the exemption based on evidence provided. The Tribunal noted the lack of contrary evidence in the appeal and directed the applicant to deposit 50% of the service tax within eight weeks, deducting the amount already paid, failing which the appeal would be dismissed. The balance amount would be waived upon deposit, and recovery stayed during the appeal's pendency. The Tribunal emphasized the importance of complying with the law and the interest of Revenue in making its decision. The stay petition was disposed of accordingly.