2014 (2) TMI 92 - AT - Service Tax

Waiver of pre-deposit - Demand of service tax - Business Support Services and Goods Transport Agency Services - Held that - as regards the service tax liability under the category of Business Support Services if the appellant has discharged the service tax liability from 1.5.11 when the services came into statute as liable for service tax liability then the question of demanding the service tax for the month of April 2011 does not arise. Be that as it may the claim of the appellant needs to be verified as to discharge of service tax liability from May 2011 to September 2011. If the said service tax liability is discharged by the appellant the appellant has made out a case for the waiver of the pre-deposit of the amount of service tax liability in Business Support Services prior to May 2011 - As regards the service tax on the Goods Transport Agency - appellant has made out a prima facie case for the waiver of the pre-deposit of the amount of service tax liability confirmed under the head Goods Transport Agency Service - Stay granted.

Summary

Issues:
1. Service tax liability under Business Support Services
2. Service tax liability under Goods Transport Agency Services

Analysis:
1. *Service tax liability under Business Support Services:*
The appellant filed stay petitions seeking the waiver of pre-deposit of a substantial service tax liability amount along with interest and penalties under Business Support Services for the period April 2001 to September 2011. The appellant argued that they are engaged in waste management as per the guidelines of the Pollution Control Board, and while the revenue classified their services under Business Auxiliary Services, they had paid service tax under Business Support Services since the services came into the statute. The appellant claimed that the adjudicating authority erroneously confirmed the service tax liability from April 2011, while they had paid from May 2011. The Tribunal directed the authorities to verify the appellant's claim of discharging the service tax liability from May 2011 to September 2011. If the claim is verified, the appellant is entitled to a waiver of the pre-deposit amount before May 2011.

2. *Service tax liability under Goods Transport Agency Services:*
Regarding the service tax liability under Goods Transport Agency Services, the appellant contended that the waste they transported should not be considered goods, citing a precedent where a similar situation was considered. The Tribunal found a strong case in favor of the appellant, noting that waste may not qualify as goods. Consequently, the Tribunal granted a waiver of the pre-deposit amount for the service tax liability confirmed under Goods Transport Agency Services. The recovery of the amount was stayed pending the disposal of the appeals.

In conclusion, the Tribunal directed the verification of the appellant's service tax liability under Business Support Services and granted a waiver for the pre-deposit amount before May 2011 if the claim is substantiated. Additionally, a waiver was granted for the service tax liability under Goods Transport Agency Services due to the nature of the transported waste. The recovery of both amounts was stayed until the appeals were resolved.