2014 (10) TMI 518 - AT - Service Tax

Waiver of pre deposit - Pandal or Shamiana Contractor servic - activity such as provision of furniture, barricades, matting and white side wall - Held that - On a prima facie analysis, in view of Section 65(77a), Pandal or Shamiana is defined to mean a place specially prepared or arranged for organising an official, social or business functions; and under Section 65(77b) Pandal or Shamiana contractor means a person engaged in providing any service, either directly or indirectly, in connection with the preparation, arrangement, erection or decoration of a Pandal or Shamiana and includes the supply of furniture, fixtures, lights and light fittings, floor coverings and other articles for use therein. Section 65(105)(zzw) enumerates any service provided or to be provided to any person by a Pandal or Shamiana Contractor in relation to a Pandal or Shamiana, in any manner and including the services, if any, provided or to be provided as a caterer, to be the taxable service. On an interactive analysis of the above provisions, the supply of furniture by the petitioner for Rajasthan Diwas and like functions clearly falls within the ambit of the taxable service. We therefore prima facie find no case in favour of the petitioner. Whether penalty should be levied is a matter to be considered at the final hearing of the appeal - Partial stay granted.

Summary

Issues:
1. Liability to remit Service Tax for providing Pandal or Shamiana Contractor service.
2. Interpretation of relevant legal provisions defining Pandal or Shamiana and taxable services.
3. Consideration of penalty imposition.
4. Granting waiver of pre-deposit and stay of further proceedings.

Analysis:
1. The judgment addresses the liability of the petitioner to remit Service Tax amounting to Rs. 3,34,048 for providing Pandal or Shamiana Contractor service during a specific period. The petitioner had already remitted a partial amount of approximately Rs. 1,72,000 during the disputed period.

2. The analysis delves into the interpretation of legal provisions related to Pandal or Shamiana services. Section 65(77a) defines Pandal or Shamiana as a place arranged for official, social, or business functions, while Section 65(77b) defines a Pandal or Shamiana contractor as someone involved in providing services related to the preparation, arrangement, or decoration of such structures. The judgment concludes that providing furniture for events like Rajasthan Diwas constitutes a taxable service.

3. The judgment contemplates the imposition of penalties, leaving the decision for the final hearing. The discussion suggests that the petitioner may face penalties based on the nature of the services provided and the tax liability.

4. Finally, the judgment grants a waiver of pre-deposit and stays further proceedings on the condition that the appellant remits the assessed Service Tax amount and interest within a specified timeline. Failure to comply would lead to the rejection of the appeal for non-payment.

This detailed analysis of the judgment provides insights into the legal considerations surrounding the liability for Service Tax, the interpretation of relevant legal provisions, the potential imposition of penalties, and the conditions for granting a waiver of pre-deposit and staying further proceedings.