2009 (5) TMI 333 - AT - Service Tax

Demand of service tax in respect of advertising agency - demand of service tax on other two services i.e. mandap keeper and business auxiliary services - the issue is squarely covered by the decision of the Tribunal in the case of BCCI v. Commissioner of Service Tax Mumbai as reported in 2007 - TMI - 1530 - CESTAT MUMBAI - As regards the demand of service tax on other two services i.e. mandap keeper and business auxiliary services we find that this issue needs to be gone into in detail - We find that the service tax demand on Mandap keeper and business auxiliary services is a debatable one. It is not free from doubt. stay granted partly

Summary

Issues:
1. Stay petition against waiver of pre-deposit for service tax amounts under advertising agency, Mandap keeper service, and business auxiliary services.

Analysis:
The case involved a stay petition challenging the waiver of pre-deposit for service tax amounts under different categories. The advocate for the Appellant argued that the demand for service tax related to advertising agency services was covered by a previous Tribunal decision in the case of BCCI v. Commissioner of Service Tax, Mumbai. Additionally, it was contended that the Appellant, being a registered society, was not a commercial concern, and therefore, the demand for service tax on Mandap keeper service and business auxiliary services should not apply. The advocate highlighted that the facilities provided were for fund-raising activities and fell outside the definition of services for a commercial concern. On the other hand, the JDR representing the Respondent argued that the activities of the Appellant were commercial in nature and should be subject to conditions.

Upon careful consideration of the arguments presented by both sides, the Tribunal made specific findings. Regarding the demand for service tax under the advertising agency category, the Tribunal noted that the issue was already settled by a previous decision in the BCCI case. However, concerning the demand for service tax on Mandap keeper service and business auxiliary services, the Tribunal found that further examination was necessary despite the Appellant's reliance on the BCCI decision. The Tribunal deemed the service tax demand on these two services as debatable and not free from doubt. Consequently, the Tribunal directed the Appellant to deposit a specific amount within a stipulated timeframe and report compliance. Upon compliance with this directive, the pre-deposit condition for the remaining amount was waived, and the recovery was stayed pending the appeal's disposal.

This detailed analysis of the judgment showcases the Tribunal's thorough examination of the arguments put forth by both parties, the application of legal precedents, and the ultimate decision regarding the waiver of pre-deposit for the service tax amounts in question.