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of <h1>Appellant's Service Tax Appeal: Pre-deposit Waiver Denied, Recovery Stay Condition Set</h1> <h3>BUILDER’S NGV CLUB Versus COMMISSIONER OF CENTRAL EXCISE, BANGALORE</h3> BUILDER’S NGV CLUB Versus COMMISSIONER OF CENTRAL EXCISE, BANGALORE - 2012 (27) S.T.R. 384 (Tri. - Bang.) Issues:1. Waiver of pre-deposit and stay of recovery in respect of Service tax demands confirmed against the appellant.2. Applicability of service tax on various components including life membership fees, guest charges, and other collections.3. Claim of suppression of facts by the appellant to evade payment of service tax.4. Consideration of financial hardships in the case.Analysis:1. The appellant sought waiver of pre-deposit and stay of recovery for Service tax demands totaling Rs. 31,95,283/- and Rs. 15,35,439/- from two show-cause notices covering periods from June 2005 to March 2008. The appellant claimed a prima facie case on merits and limitation, arguing that certain fees and charges were not taxable under the 'club or association service' category. The appellant was directed to pre-deposit Rs. 10 lakhs within six weeks for waiver of pre-deposit and stay of recovery for the remaining dues and penalties.2. The dispute revolved around the levy of service tax on various collections such as life membership fees, guest charges, and other activities like health club charges. The appellant contended that certain fees, like life membership fees, were refundable and not subject to service tax. The authorities argued that all amounts collected were liable for service tax under the 'club or association service' category. The tribunal found no prima facie case for exempting life membership fees from service tax but acknowledged potential exemptions for minor components like health club collections.3. The appellant claimed that crucial facts were known to the Department at the time of registration, and hence, the show-cause notices issued beyond the normal period of limitation were invalid. However, the tribunal disagreed, noting that the appellant did not pay service tax on collections despite being registered since 2006. The tribunal found the allegation of suppression of facts to evade payment of service tax valid, as the appellant failed to provide a valid explanation for the omission.4. Financial hardships were not pleaded by the appellant in the application. The tribunal directed the appellant to pre-deposit a reasonable sum of Rs. 10 lakhs within six weeks, with the possibility of waiver of pre-deposit and stay of recovery for the remaining dues and penalties upon compliance. The decision was pronounced in open court, emphasizing the need for timely compliance with the pre-deposit directive.
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