2009 (12) TMI 428 - AT - Service Tax

Stay- Security Agency Service- Demand confirmed against the assessee under the head security agency and manpower recruitment agency . Held that- documents not indicating that organization run with profit motive. Prima facie appellant not a commercial concern. Thus pre-deposit waived.

Summary

Issues:
Stay applications for waiver of pre-deposit of demand confirmed under "security agency" and "manpower recruitment agency" services.

Analysis:
The judgment pertains to 11 stay applications filed by M/s. Kerala State Ex-Services League seeking waiver of pre-deposit of demand totaling Rs. 1,59,42,703/- confirmed against them for services under "security agency" and "manpower recruitment agency." The Tribunal examined the material period from 16-10-2004 to 31-3-2006 and the definition of taxable service during that time. It was noted that the appellant's activities were aimed at promoting the welfare of ex-service men and their dependants, without a clear objective of profit-making as per their Memorandum and Articles of Association. The authorities had categorized the appellants as a commercial concern based solely on their participation in bids and tenders, without substantial evidence. Citing a precedent where a similar demand was waived for a Welfare Cooperative Society, the Tribunal found that the appellants had established a prima facie case for waiver of the demands. Consequently, the Tribunal ordered the waiver of pre-deposit of the dues adjudged against the appellants and stayed the recovery pending the appeal decision.