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2014 (2) TMI 142 - AT - Service TaxWaiver of pre-deposit of tax - Demand of service tax - Club or Association Services - Held that - prima facie the applicant is liable to pay tax on interest on installment sales and room rentals and directed to deposit 10% of the tax - Upon such deposit, pre-deposit of the balance amount of tax, interest and penalty are waived and recovery thereof stayed during the pendency of the appeal - Conditional stay granted.
Issues: Application for waiver of pre-deposit of tax of Rs.5,87,62,882/- along with interest and penalty.
Analysis: The judgment pertains to an application for waiver of pre-deposit of tax amounting to Rs.5,87,62,882/- along with interest and penalty. The applicant is engaged in providing taxable services under the category of Club or Association Services, specifically related to holiday and leisure services provided in resorts. Allegations were made that the applicant had collected additional amounts beyond membership fees for various services like room rentals, telephone usage, interest on installment sales, and income from securitization, which were not included in the taxable value. The Tribunal had previously issued a stay order directing the applicant to deposit 10% of the tax after finding prima facie liability on interest on installment sales and room rentals. The learned counsel argued that the Tribunal's consideration of actual tax receipt in the previous stay order was not applicable to the current case. The learned AR contended that the Tribunal's consideration of actual tax receipt in the previous stay order was not relevant in the present case. After hearing both sides and considering the earlier stay order, the Tribunal directed the applicant to deposit Rs.90,00,000/- within eight weeks and report compliance by a specified date. Upon such deposit, the pre-deposit of the remaining tax, interest, and penalty was waived, and the recovery thereof was stayed during the pendency of the appeal. The judgment was dictated and pronounced in open court by the Tribunal.
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