2014 (7) TMI 848 - AT - Service Tax

Waiver of pre deposit - Demand of service tax - Security services provided by Superintendent of police - service provided for IPL match - Payment not received for services received - Held that - during the impugned period, service tax liability arises at the time of remuneration received towards service provided as no amount has been received by the appellant, therefore, appellant has made out a case for waiver of pre-deposit - matter remanded back - Commissioner (Appeals) to decide the issue on merits without insisting on pre-deposit - stay granted.

Summary

Issues:
1. Non-compliance of stay order leading to dismissal of appeal.
2. Tax liability for security services provided by a Superintendent of Police.
3. Requirement of pre-deposit for challenging tax demand.
4. Jurisdiction of the Commissioner (Appeals) to decide on merits.

Analysis:
1. The appellant appealed against an order dismissing their appeal due to non-compliance with a stay order. The appellant, a Superintendent of Police, provided security services for IPL matches and raised invoices for additional security. The Revenue issued a show-cause notice for service tax demand for the period May 2006 to March 2011. The Adjudicating authority confirmed the demand, and the Commissioner (Appeals) directed the appellant to make a pre-deposit, which was not done, leading to the appeal's dismissal.

2. The appellant argued that service tax liability arises upon actual receipt of remuneration for services provided. As the appellant did not receive any payment from Vidarbha Cricket Association for security services, they contended they were not liable to pay service tax. The appellant also claimed that security provided by the police was not taxable during the relevant period.

3. The Tribunal considered that service tax liability arises when remuneration is received for services provided. Since the appellant did not receive any payment, the Tribunal waived the pre-deposit requirement. Additionally, the Tribunal noted that the impugned order was not passed on merits by the Commissioner (Appeals), leading to the decision to remand the matter back for a decision on merits without insisting on pre-deposit.

4. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Commissioner (Appeals) for a decision on the issue's merits without requiring pre-deposit. The appeal and stay application were disposed of accordingly.