2015 (7) TMI 1005 - AT - Service Tax

Waiver of pre deposit - Online Information and Data Base Access or Retrieval service, Club or association service and Manpower Recruitment or Supply Agency service - Held that - On going through the order, in our opinion, 50% payment was mentioned, primarily because the service of online information and data base access could not have been considered to have been rendered in the case of the appellant. As regards club or association service, it was basically a charge for utilization of library/learning research centre facilities and therefore it cannot be considered as a club or association service. As regards the last service, namely manpower supply, the service tax has been demanded on the costs incurred on the external facilities. The learned counsel relied upon the decision in the case of CST Vs Arvind Mills Ltd. 2008 (10) TMI 110 - PUNJAB & HARYANA HIGH COURT where a view was taken that deputation of staff to subsidiaries/group companies for stipulated work for a limited period cannot be considered as manpower supply. - it is not necessary to require the appellant to make any pre-deposit and accordingly we waive the requirement of pre-deposit and grant stay against recovery of all the dues during the pendency of appeal - Stay granted.

Summary

Issues involved:
1. Demand of service tax for various services
2. Waiver of pre-deposit and grant of stay against recovery

Analysis of the judgment:

1. Demand of service tax for various services:
The Appellate Tribunal CESTAT BANGALORE addressed the demand of service tax amounting to Rs. 70,39,724/- for the period from October 2006 to September 2011. The services in question included Online Information and Data Base Access or Retrieval service, Club or association service, and Manpower Recruitment or Supply Agency service. The Tribunal noted that a similar issue concerning the first two services had been previously considered for the same appellant, resulting in the waiver of the demand in a previous order. The Tribunal acknowledged that the appellant had deposited 50% of the service tax demanded and recognized a prima facie case. Specifically, regarding the online information and data base access service, the Tribunal agreed that it could not have been considered as rendered by the appellant. Concerning the club or association service, it was clarified that the charge was for utilizing library/learning research center facilities and not a club or association service. For the manpower supply service, the Tribunal considered the argument that the service tax demand was based on costs incurred on external facilities. Reference was made to a decision in the case of CST Vs Arvind Mills Ltd., where it was held that deputation of staff to subsidiaries/group companies for specific work does not constitute manpower supply. The Tribunal found the issue debatable and contentious, requiring a detailed analysis of the nature of activity undertaken, the agreement, and the expenses incurred.

2. Waiver of pre-deposit and grant of stay against recovery:
Given the circumstances and the Tribunal's analysis of the services in question, it was determined that requiring the appellant to make any pre-deposit was unnecessary. Consequently, the Tribunal waived the requirement of pre-deposit and granted a stay against the recovery of all the dues during the pendency of the appeal.

This judgment by the Appellate Tribunal CESTAT BANGALORE provides a detailed analysis of the demand of service tax for various services, including the considerations for waiver of pre-deposit and the grant of stay against recovery based on the specific circumstances and arguments presented before the Tribunal.