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2013 (7) TMI 235 - AT - Service TaxService tax demand stay - Held that - Jurisdiction to the matter held to be in the favour of the revenue in STANDARD CHARTERED BANK & OTHS. VERSUS COMMISSIONER OF SERVICE TAX, MUMBAI 2013 (7) TMI 240 - CESTAT MUMBAI Sale or service tax - The appellant s contention that the transaction is of sale and not of service is not tenable because from the beginning he has discharged service tax under renting of immovable property classified under service. Time barred - The appellant raised the issue being time barred Held that - It is a question of both fact and law and can be gone into in detail at the time of final hearing - From the facts available on record the matter came to light only when the department started investigation into the activities of the appellant. Financial hardship Held that as per the decision in SQL Star International Ltd. V/s CC, CE and Service Tax Commissionerate (2011 (7) TMI 868 - Andhra Pradesh High Court) - balance of convenience and irreparable loss to Revenue have to be taken into account while considering grant of interim stay. Stay application - assessee directed to make a pre-deposit of 50% of the service tax demand - On submission of the pre-deposit of balance of dues and stayed during the pendency of the appeal.
Issues involved:
Classification of service provided by the appellant under 'Business Support Services' (BSS), Jurisdiction of the Commissioner, Scope of service tax levy, Time bar on demand, Waiver of penalty under section 80 of the Finance Act, 1994, Financial hardship plea, Balance of convenience for grant of interim stay. Classification of service under 'Business Support Services' (BSS): The appellant, a retail store operator, provided concession to display, demonstrate, and sell products in their stores. The department classified this service under BSS, demanding service tax. The appellant argued that the transaction was a sale of goods, not a service, as VAT was paid on transactions. However, the Tribunal found that the activity did not qualify as renting of immovable property and included infrastructural support services. The Tribunal noted that the appellant provided facilities attracting customers to the retail mall, falling under BSS as per the Finance Act, 1994. Jurisdiction of the Commissioner: The appellant challenged the jurisdiction of the Commissioner, claiming that the Chief Commissioner did not have the power to delegate adjudication. The Tribunal had previously ruled in favor of the Revenue on this issue, upholding the Commissioner's jurisdiction. Scope of service tax levy: The appellant contended that post-1-6-07, they paid service tax under "renting of immovable property" category, which should apply to the previous period. However, the Tribunal held that if service tax was paid post-1-6-07, the activity could not be considered a sale for the prior period, as claimed by the appellant. Time bar on demand: The appellant argued that the demand was time-barred due to their belief about service tax liability before 1-6-07. The Tribunal noted that the issue of suppression of facts and the time bar would be examined in detail during the final hearing, as the department discovered the matter through investigation. Waiver of penalty under section 80 of the Finance Act, 1994: The appellant sought penalty waiver under section 80 of the Finance Act, 1994. However, the Tribunal did not find financial hardship pleaded by the appellant and cited a High Court decision emphasizing the need to consider a prima facie case, balance of convenience, and irreparable loss to Revenue for granting interim stay. Balance of convenience for grant of interim stay: Considering the lack of a prima facie case in favor of the appellant and the absence of financial hardship, the Tribunal directed the appellant to make a pre-deposit of 50% of the service tax demand within eight weeks. Compliance would lead to waiving the balance of dues and staying recovery during the appeal's pendency.
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