2015 (2) TMI 797 - AT - Service Tax

Modification of stay order - Waiver of pre deposit - Held that - Considering the final order passed by Principal Bench at Delhi in the case of Greater Noida Industrial Development Authority 2014 (9) TMI 306 - CESTAT NEW DELHI and also the order of the Hon'ble High Court of Bombay in the case of City & Industrial Development Corporation of Maharashtra Ltd. 2014 (11) TMI 127 - BOMBAY HIGH COURT , we modify our order 2014 (9) TMI 697 - CESTAT MUMBAI by waiving the requirement of pre-deposit of ₹ 185 crore and direct the registry to list the appeal for final hearing without insisting on any pre-deposit. Revenue is restrained from recovery of dues adjudged against the appellant during the pendency of the appeal. - Modification allowed.

Summary

Issues: Modification of stay order, exigibility to service tax on premium collected in land lease transactions.

Analysis:
1. Modification of Stay Order: The appellant, M/s. Maharashtra Industrial Development Corporation, was directed to make a pre-deposit of &8377; 185 crore as service tax demand within 12 weeks. The appellant filed a miscellaneous application for modification of the stay order based on subsequent developments. The appellant's consultant argued that the Principal Bench at New Delhi and the Hon'ble High Court of Bombay had considered similar cases and waived the pre-deposit requirement. The Revenue did not object to the modification. The Tribunal, considering the decisions in the cases mentioned, modified the stay order, waiving the pre-deposit requirement and allowing the appeal for final hearing without insisting on any pre-deposit. The Revenue was restrained from recovering dues during the appeal's pendency.

2. Exigibility to Service Tax: The issue of exigibility to service tax on premium collected in a transaction involving land leased for subsequent commercial construction was crucial. The appellant's consultant cited the decision of the Principal Bench at New Delhi, which held that the salami premium collected is not subject to service tax under the category of "renting of immovable property." Additionally, the Hon'ble High Court of Bombay directed the Tribunal to hear an appeal without insisting on a pre-deposit in a similar case. These decisions influenced the Tribunal's decision to modify the stay order in the appellant's favor, aligning with the principles established in the cited cases.

In conclusion, the Tribunal allowed the modification of the stay order based on the developments in similar cases, specifically regarding the exigibility of service tax on premium collected in land lease transactions. The decision highlighted the importance of precedent and consistency in judicial decisions, ultimately benefiting the appellant by waiving the pre-deposit requirement and allowing the appeal to proceed without hindrance.