2014 (1) TMI 198 - AT - Service Tax

Waiver of pre-deposit - Demand of service tax - Business Support Services - Held that - any commission received by the said turf club for providing facility in the turf club would not fall under the category of Business Support Services. At this juncture we find that the appellant has made out a case for the waiver of the pre-deposit of the amounts involved as the stay orders of Coordinate Benches in the case of Madras Race Club 2008 (9) TMI 199 - CESTAT CHENNAI and Royal Western India Turf Club Ltd. 2012 (7) TMI 630 - CESTAT MUMBAI is on the same issue. Accordingly application for the waiver of the pre-deposit of the amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

Issues:
Waiver of pre-deposit of Service Tax, interest, and penalties under various sections.

Analysis:
The case involved a stay petition for the waiver of pre-deposit of Service Tax, interest, and penalties amounting to Rs. 9,93,798. The adjudicating authority initially ruled in favor of the assessee, stating that the appellant was not providing Business Support Services to a restaurant operating within a club. However, the first appellate authority overturned this decision, holding the appellant liable for service tax under Business Support Services due to receiving fixed income from restaurant owners within the premises.

The arguments presented by both sides focused on whether the appellant's activities fell under Business Support Services. The appellant's representative referenced judgments from previous cases involving clubs to support their claim that services provided to club members are not classifiable under the Finance Act, 1994. On the other hand, the Departmental Representative argued that the appellant was essentially providing infrastructure services to the restaurant owners within the premises.

After considering the submissions, the Tribunal referred to previous stay orders in cases involving clubs and determined that the appellant's case for waiver of pre-deposit was valid. Citing precedents from the Madras Race Club and Royal Western India Turf Club Ltd., the Tribunal allowed the application for waiver of pre-deposit and stayed the recovery of the amounts involved until the appeal's final disposal. This decision was based on the similarity of issues in the present case to those addressed in the earlier cases.

In conclusion, the Tribunal granted the waiver of pre-deposit based on the precedents and the appellant's case, highlighting the relevance of previous judgments in similar contexts. The decision emphasized the specific circumstances of the case and the application of legal principles to determine the liability for Service Tax under Business Support Services.