2014 (11) TMI 753 - AT - Service Tax

Waiver of pre deposit - Club or Association Service - Held that - Ranchi Club Ltd. Vs. Commissioner of Central Excise & Service Tax, Ranchi Zone reported in 2012 (6) TMI 636 - Jharkhand High Court , Sports Club of Gujarat Ltd. Vs Union of India reported in 2013 (7) TMI 510 - GUJARAT HIGH COURT - In view of that, we waive the pre-deposit of tax along with interest and penalty till disposal of the appeal - Stay granted.

Summary

Issues:
1. Confirmation of demand of tax, interest, and penalty for 'Club or Association Service' from Jun.'05 to Mar.'11.
2. Interpretation of decisions by different High Courts and Tribunals regarding similar issues.
3. Consideration of waiver of pre-deposit of tax, interest, and penalty pending appeal.

Analysis:
1. The judgment addressed the confirmation of the demand of tax, interest, and penalty on the applicant for providing 'Club or Association Service' during the specified period. The Tribunal reviewed the submissions from both parties and examined the records before reaching a decision.

2. The legal counsels referenced various court decisions to support their arguments. The applicant's counsel cited cases from the Hon'ble Jharkhand High Court and the Hon'ble Gujarat High Court where similar demands were dropped. Additionally, a case from the Delhi branch of the Tribunal was mentioned where the appeal on the same issue was allowed. On the contrary, the Revenue's Authorized Representative highlighted a case where the appeal was rejected by the Tribunal. The Representative also mentioned that an appeal had been filed before the Hon'ble Supreme Court against the decision of the Hon'ble Gujarat High Court.

3. After considering the arguments and the decisions from different courts and tribunals, the Tribunal noted that the Hon'ble Gujarat High Court and the Hon'ble Jharkhand High Court had ruled in favor of the assessee on this issue. In light of this, the Tribunal decided to waive the pre-deposit of tax, interest, and penalty until the appeal's final disposal. Both stay applications were allowed based on this assessment. The judgment thus provided relief to the applicant by granting the waiver pending the appeal process.