2013 (10) TMI 1061 - AT - Service Tax

Mandap Keeper Services Waiver of Pre-deposit - Held that - The issue involved in the case was regarding the differential service tax liability under the category of mandap keeper services - The appellant was offering a package to the corporate for holding conferences in their resort by giving them special tariff rates - According to the department such a room rent can be bifurcated into room rent, and food charges can be covered under mandap keeper service - The issue involved in this case was arguable and debatable one - the amount deposited by the appellant was enough deposit to hear and dispose the appeal on merits - application for the waiver of pre-deposit of the balance amounts involved was allowed and recovery stayed till the disposal of appeal Stay granted.

Summary

Issues involved: Stay petition for waiver of pre-deposit of service tax demand, interest, and penalties under Sections 76 & 77 of the Finance Act, 1994 for differential service tax liability under mandap keeper service.

Analysis:

1. Stay petition for waiver of pre-deposit: The appellant filed a stay petition seeking waiver of pre-deposit of Rs.7,76,572/- confirmed as demand of service tax, interest, and penalties under Sections 76 & 77 of the Finance Act, 1994. The issue revolved around the differential service tax liability under the category of mandap keeper services. The appellant offered a package to corporate clients for holding conferences, with the department contending that room rent and food charges could be covered under mandap keeper service.

2. Submission by the appellant: The appellant's chartered accountant argued that the services' taxability needed consideration on merits. It was highlighted that the appellant had already deposited Rs.4,50,000/- in support of their case, evidenced by a copy of the government collection account challan. This deposit was deemed sufficient by the appellant to enable a fair hearing and disposal of the appeal on its merits.

3. Decision and rationale: After hearing the arguments and examining the records, the Tribunal found the issue to be arguable and debatable. The Tribunal concluded that the amount already deposited by the appellant was adequate to proceed with the appeal's hearing and disposal on merits. Consequently, the application for waiver of pre-deposit of the remaining balance amounts was allowed, and recovery thereof was stayed until the appeal's final disposal. This decision was crucial in ensuring fairness and due process in the adjudication of the appellant's case.

This detailed analysis outlines the key aspects of the judgment, including the nature of the petition, arguments presented, and the Tribunal's decision regarding the waiver of pre-deposit in the context of the differential service tax liability under mandap keeper services.