2013 (10) TMI 910 - AT - Service Tax

Mandap Keeper Services - Denial of credit on telephones - Held that - According to the Revenue the said telephone connections were not installed in the premises from where the output services were provided since telephone connections were at Reception only and were connected through EPABX Systems, it cannot be said that no telephones were installed in the specific area - petitioner has made out a prima facie case and is entitled for grant of relief - waiver of pre-deposit of the adjudicated liability and stay all further proceedings pursuant to the impugned order is granted - Following decision of M/s Rambagh Palace Hotels Pvt. Ltd. vs. C.C.E. 2013 (12) TMI 556 - CESTAT NEW DELHI - stay granted.

Summary

Issues Involved:
Delay in filing appeal, condonation of delay, inclusion of remuneration received from renting hotel rooms to wedding parties in taxable service 'Mandap Keeper', waiver of pre-deposit, stay of further proceedings.

Delay in Filing Appeal - Condonation of Delay:
The judgment addressed a technical delay of about three months in filing an appeal. The appellant had entrusted the appeal papers to a courier agency for delivery to the Tribunal, but the papers could not be traced in the Registry. Despite the delay, the satisfactory cause was shown, leading to the condonation of the delay by the Tribunal. The application seeking condonation was allowed based on the circumstances presented.

Inclusion of Remuneration from Renting Hotel Rooms in Taxable Service 'Mandap Keeper':
The issue revolved around whether remuneration received from renting hotel rooms to wedding parties should be included in the gross value for the taxable service 'Mandap Keeper'. The Tribunal referenced previous decisions, including M/s Rambagh Palace Hotels Pvt. Ltd. vs. C.C.E., Jaipur and Merwara Estate vs. C.C.E., Jaipur, to support the appellant's case. The Tribunal found that the appellant had made out a prima facie case based on the decisions cited. Consequently, the Tribunal granted waiver of pre-deposit of the adjudicated liability and stayed all further proceedings pending the appeal's disposal. This decision was crucial in determining the liability and treatment of remuneration from renting hotel rooms in the taxable service.

Waiver of Pre-Deposit and Stay of Further Proceedings:
The Tribunal, considering the circumstances and the prima facie case made by the appellant, granted waiver of pre-deposit of the assessed liability. Additionally, the Tribunal stayed all further proceedings pursuant to the impugned order until the appeal was resolved. This decision aimed to prevent unwarranted hardship to the appellant and ensure a fair process during the appeal proceedings. The stay application was disposed of accordingly, providing relief to the appellant in terms of financial obligations and legal proceedings.

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