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of <h1>Tribunal Grants Waiver in Service Tax Appeal</h1> <h3>SULABH INTERNATIONAL SOCIAL SERVICE ORGANISATION Versus CC., CE. & ST., HYDERABAD-II</h3> SULABH INTERNATIONAL SOCIAL SERVICE ORGANISATION Versus CC., CE. & ST., HYDERABAD-II - 2009 (16) S.T.R. 49 (Tri. - Bang.) Issues:1. Requirement of pre-deposit of service tax, education cess, interest, and penalties.2. Dispute regarding liability to pay service tax on the amount collected for constructing toilets.3. Applicability of the Board's clarification on service tax liability for maintaining public toilets.4. Granting of waiver for the balance amount of service tax and interest.Analysis:1. The judgment dealt with the requirement of pre-deposit by the appellants, including service tax, education cess, interest, and penalties under Section 76 and Section 77. The advocate for the appellant acknowledged the payment of a part of the amount but disputed the liability for the balance amount related to service tax on funds received from Singareni Collieries Company Ltd. The contention was that the construction of toilets in Ramagundam for public use, as per the agreement with SCC, should not attract service tax as compensation would be received from SCC.2. The advocate argued that the services provided, i.e., constructing toilets for public use, fell within the scope of the Board's clarification dated 23-10-2006. The clarification highlighted that activities like maintaining public toilets for nominal charges did not constitute taxable services under 'management, maintenance, and repair' services. It emphasized that such activities did not pertain to immovable property management and the actual beneficiaries were the users paying for the service, not the municipal bodies or organizations involved in the contract.3. The Tribunal, after considering the Board's circular, agreed that the appellant's services aligned with the activities described therein. Consequently, the Tribunal ordered the waiver of the pre-deposit for the balance amount of service tax and interest. It further directed that no coercive measures should be taken until the appeal was decided. The stay order was to persist even beyond the 180-day limit as per established jurisprudence, ensuring the appellant's protection from enforcement actions during the appeal process.4. The judgment, pronounced and dictated in open court, focused on the interpretation of the Board's circular regarding service tax liability for maintaining public toilets and its application to the appellant's case. By granting a waiver for the disputed amount and interest, the Tribunal provided interim relief to the appellant pending the final decision on the appeal, in line with the principles of natural justice and fair adjudication.
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