2010 (4) TMI 453 - AT - Service Tax

Stay - Manpower recruitment or supply agency service - . The issue involved is regarding Service tax liability of the appellant on services rendered under the category of manpower recruitment or supply agency service . Held that work order indicating services rendered prima facie covered under manpower service. Prima facie case made out for complete waiver of pre deposit.

Summary

Issues:
Service tax liability on services rendered under "manpower recruitment or supply agency service".

Analysis:
The appellant filed a stay petition seeking waiver of pre-deposit for various amounts, including Service Tax, Interest, and Penalties. The issue revolved around the nature of services provided by the appellant, specifically whether they fell under "manpower recruitment or supply agency service." The appellant argued that their work for the City Municipal Council involved cleaning tasks, not manpower supply. The Departmental Representative contended that the contract clearly specified the supply of workers for designated tasks. The Tribunal examined the contract and determined that the services provided were prima facie covered under "manpower recruitment or supply agency service." The Tribunal noted that the appellant failed to establish a strong case for a complete waiver of pre-deposit. Consequently, the Tribunal directed the appellant to pre-deposit a specific amount within a set timeframe and stay recovery of the remaining amounts pending appeal. Failure to comply would result in the dismissal of the appeal.

This judgment highlights the importance of establishing a prima facie case when seeking a waiver of pre-deposit in tax-related matters. The Tribunal's decision was based on a careful consideration of the contract and the nature of services provided by the appellant. The case law cited by the appellant was deemed irrelevant due to differing facts and circumstances. The Tribunal's directive for partial pre-deposit and stay of recovery pending appeal demonstrates a balanced approach to addressing tax liabilities while ensuring compliance with legal procedures. The judgment serves as a reminder for taxpayers to thoroughly substantiate their claims when seeking relief from financial obligations pending the resolution of disputes.