2015 (12) TMI 600 - AT - Service Tax

Waiver of pre deposit - works contract service - Held that - No prima facie case made out for exclusion from service tax liability in respect of works contract services provided for APMC since facilitation of marketing activities by market committees is clearly for furtherance of business and commerce. - Partial stay granted.

Summary

Issues:
1. Service tax liability on works contract services provided for various projects.
2. Exclusion from service tax liability for works contract services provided for Commonwealth Games and Road Transport Corporations.
3. Exclusion from service tax liability for works contract services provided for Agricultural Produce Market Committee (APMC).
4. Granting waiver of predeposit and stay of further proceedings.

Analysis:

1. The Commissioner confirmed a service tax demand on the petitioner for providing works contract services for different projects, including infrastructure for Delhi University, APMC, and Road Transport Corporations. The petitioner remitted a portion of the tax liability before the show-cause notice. The remaining liability, including approximately Rs. 80 lakhs for APMC services, was under dispute. The petitioner claimed immunity from service tax liability for works contract services related to Commonwealth Games and Road Transport Corporations, citing exclusion clauses under Section 65(105)(zzzza). Reference was made to a previous Tribunal decision supporting the exclusion contention.

2. The Tribunal found no prima facie case for excluding the service tax liability concerning works contract services provided for APMC. The Tribunal reasoned that the facilitation of marketing activities by market committees, such as APMC, clearly falls within the scope of furthering business and commerce, thus not qualifying for exclusion from service tax liability.

3. Based on the analysis, the Tribunal granted a waiver of predeposit and a stay on further proceedings for realizing the adjudicated liability. The petitioner was required to remit Rs. 80 lakhs within four weeks and report compliance by a specified date. Upon such deposit, the realization of the remaining liability would be stayed. Failure to comply would result in the dissolution of the stay and dismissal of the appeal for lack of predeposit.

4. The order was dictated and pronounced in open court, detailing the decision to grant the waiver of predeposit and stay of proceedings, subject to the petitioner's compliance with the specified conditions. The stay application was disposed of accordingly, providing clarity on the next steps for the petitioner in the legal process.