2014 (1) TMI 1102 - AT - Service Tax

Demand of service tax - Business Auxiliary Service - Commercial Training or Coaching Centre Services - Held that - Prima facie demand towards Business Auxiliary Service is unsustainable in view of the decision in Paul Merchants Ltd. vs. CCE, Chandigarh (2012 (12) TMI 424 - CESTAT, DELHI (LB)). In so far as the demand under the head Commercial Training or Coaching Centre Services is concerned, activities of the petitioner/ appellant prima facie fall under Section 65(105) (zzzc) read with Section 65(26) and 65 (27) of the Act and hence no case is made out for interdiction of the pre-deposit or for grant of stay in respect of this assessed liability - Conditional stay granted.

Summary

Issues:
1. Waiver of pre-deposit and stay of further proceedings for recovery of the adjudicated amount.
2. Service tax demand confirmation for Business Auxiliary Service and Commercial Training or Coaching Centre Services.
3. Sustainability of the demand under different service categories.
4. Grant of waiver and stay based on legal analysis and conditions imposed.

Analysis:
1. The judgment addresses the application seeking waiver of pre-deposit and stay of further proceedings for recovery of the adjudicated amount. The relief sought pertains to a service tax demand of Rs. 27,21,346/- for Business Auxiliary Service and Rs. 53,25,568/- for Commercial Training or Coaching Centre Services, along with interest and penalties assessed under the Finance Act, 1994.

2. The Tribunal, after considering the arguments presented, found that the demand of Rs. 27,21,346/- towards Business Auxiliary Service is unsustainable based on a previous decision cited. However, regarding the demand of Rs. 53,25,568/- for Commercial Training or Coaching Centre Services, the activities of the petitioner/appellant were deemed to fall under specific sections of the Act, indicating no grounds for interdiction of pre-deposit or stay concerning this liability.

3. Consequently, the Tribunal granted waiver of pre-deposit and stay of all further proceedings related to the adjudication order, subject to the condition that the petitioner/appellant remits the amount of Rs. 53,25,568/- along with the relevant interest and penalty within four weeks from the date of the judgment. Failure to comply within the stipulated timeframe would result in the immediate dissolution of the granted stay without further reference to the Tribunal.

4. The application was disposed of in accordance with the analysis provided, emphasizing the specific conditions imposed for the grant of waiver and stay, highlighting the legal basis for the decision, and outlining the consequences of non-compliance with the stipulated requirements. The judgment reflects a detailed consideration of the legal aspects involved in determining the sustainability of the service tax demands and the corresponding relief sought by the petitioner/appellant.