2013 (12) TMI 731 - AT - Service Tax

Stay application - Business auxiliary service - Held that - National Highway Authority of India has availed services of the respondents. Fundamentally, the said National Highway Authority of India (NHAI) is not established by Revenue to be business concern nor a commercial concern not being engaged in any business activity. Therefore providing business auxiliary services by respondents to such NHAI is inconceivable - Stay granted.

Summary

Issues Involved:
1. Delay in filing the appeal.
2. Consideration of activities falling within the ambit of business auxiliary service.
3. Reasoning for activities not falling within the purview of the law.
4. Pre-deposit requirement.
5. Services provided to the National Highway Authority of India.
6. Establishment of NHAI as a business or commercial concern.

Analysis:
1. The judgment began by addressing a delay in filing the appeal, with the learned DR explaining a 2-day delay beyond the control of Revenue. Both sides had no objection, leading to the allowance of the MA (COD) application and the admission of the appeal.

2. The Revenue contested the stay application, arguing that the authorities below had not considered the activities of the respondents falling within the scope of business auxiliary service, which was a key concern for the appeal.

3. The Revenue was aggrieved by the reasoning in para 3.4 of the impugned order, which held that the respondent's activities did not fall within the purview of the law, prompting the need for a detailed examination and clarification in the judgment.

4. After hearing both sides and reviewing the records, the tribunal found no merit in the Revenue's argument, leading to the decision to dispense with the requirement of pre-deposit and reject the stay application, a crucial aspect of the judgment.

5. The tribunal delved into the merits of the matter, highlighting that the respondents had provided services to the National Highway Authority of India. It emphasized that the NHAI was neither established as a business concern nor a commercial concern engaged in business activities, rendering the provision of business auxiliary services inconceivable, a pivotal point in the judgment.

6. Based on the establishment of NHAI and its nature, the tribunal dismissed the appeal of the Revenue without approving the reasons given by the adjudicating authority, concluding the case with the disposal of the MA(COD), stay application, and appeal in the mentioned manner, as pronounced in the open court.