2006 (5) TMI 27 - AT - Service Tax

Service Tax - Mandap Keeper - The appellant not produced any document to evidence letting out open space and permission given by trust - Case remanded

Summary

Issues:
1. Condonation of delay in filing the appeal
2. Stay application for waiver of pre-deposit of penalty
3. Liability to pay service tax for letting out open land for functions

Condonation of Delay:
The Appellate Tribunal allowed the application for condonation of delay of 26 days in filing the appeal, being satisfied with the reasons provided in the application. This decision enabled the appeal to proceed despite the delay in filing.

Stay Application for Waiver of Pre-deposit of Penalty:
The Tribunal, after hearing both sides, decided to proceed with hearing and deciding the appeal itself at the current stage, with the consent of both parties, instead of considering the stay application for waiver of pre-deposit of penalty. The penalty imposed upon the appellant school was Rs. 10,000/- plus Rs. 3,000/-, and the Tribunal found it feasible to proceed directly to the appeal.

Liability for Service Tax on Letting Out Open Land:
The authorities below held that the appellant was liable to pay service tax for providing services as a "Mandap Keeper" by letting out open land for functions in exchange for consideration. The appellant argued that the open space belonged to a trust, not the school, and that consideration was paid to the trust, not the school. The appellants presented the certificate of registration of the trust as a "Mandap Keeper" under the Finance Act, 1994. Despite the lack of documents supporting the claim that the trust let out the open space, the Tribunal decided that in the interest of justice, the case should be remanded to the adjudicating authority for a fresh decision. The appellants were given the opportunity to provide further documents to support their argument that they were not liable for service tax, and the liability should fall on the trust. The impugned order was set aside, and the appeal was allowed by way of remand for a fresh decision.

This comprehensive analysis covers the issues of condonation of delay, the stay application for waiver of pre-deposit of penalty, and the liability for service tax on letting out open land for functions, as addressed in the judgment by the Appellate Tribunal CESTAT, MUMBAI.