2013 (12) TMI 1075 - AT - Service Tax

Stay application - Demand of service tax - Held that - Appellants are engaged in renting out of immovable property owned by them to various persons. Said activity of renting of immovable property came into service tax net w.e.f. 1.6.2007 under sec 65 (90a) of Finance Act, 1994 and taxable service is defined under section 65(105)(zzzz) of the Finance Act. The activities of appellants prima facie fall under category of renting of immovable property service - Prima facie case not in favour of assessee - Stay denied.

Summary

Issues:
1. Appeal against Common Order-in-Appeal No. 455-467/BK/GGN/2011 dated 31.10.11.
2. Waiver of pre-deposit and stay of recovery against Service Tax and interest confirmed by lower authorities.
3. Applicability of service tax on renting out of immovable property.
4. Direction for the deposit of the entire service tax amount with interest.

Analysis:
The judgment pertains to three appeals and three stay petitions filed against a Common Order-in-Appeal dated 31.10.11. The appellants, engaged in renting out immovable property, sought waiver of pre-deposit and stay of recovery against Service Tax and interest confirmed by lower authorities. Despite multiple listings and adjournments due to lack of representation, an authorized person eventually submitted a letter stating inability to pay the Service Tax and requesting a stay on payment. The Tribunal proceeded to hear the case.

The Tribunal considered the nature of the appellants' activities, which involved renting out immovable property, a service brought under the service tax net from 1.6.2007. The taxable service was defined under section 65(105)(zzzz) of the Finance Act, and the appellants' activities prima facie fell under the category of renting of immovable property service. Consequently, the Tribunal directed the appellants to deposit the entire service tax amount with interest within four weeks and report compliance by a specified date.

In conclusion, the judgment addressed the issues of appeal against a previous order, waiver of pre-deposit and stay of recovery against Service Tax, the applicability of service tax on renting out immovable property, and the specific direction for the deposit of the entire service tax amount with interest. The decision was based on the legal provisions and the nature of the appellants' activities, ultimately requiring compliance with the payment of service tax and interest within a specified timeframe.