Tribunal grants waiver & stay on service tax for TN Police Housing Corp.

The Tribunal granted waiver of pre-deposit of dues and a stay on the collection of such dues during the pendency of appeals in three cases concerning service tax on construction activity for residential complexes for Tamil Nadu Police Housing Corporation. The Tribunal found a prima facie case in favor of the appellants, stating that the houses constructed were owned by the State Government and allotted to police personnel, leading to the grant of waiver and stay against the impugned demand and connected appeals.

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Issues:
Three stay petitions in three appeals regarding service tax on construction activity for residential complexes for Tamil Nadu Police Housing Corporation.

Analysis:
The judgment involves three separate appeals concerning the construction of residential complexes for the Tamil Nadu Police Housing Corporation without paying service tax. The Revenue claimed that the construction activity was taxable under the Finance Act 1994. After adjudication and the first appeal, the amounts confirmed against the three different applicants are detailed in the table provided in the judgment. The applicants, aggrieved by the Commissioner (Appeals) order, filed appeals along with applications for waiver of pre-deposit of dues for admission of appeals.

The Advocate for the applicants argued that the residential complexes were constructed for the personal use of Tamil Nadu Government officials, falling under the exclusion clause of the Finance Act. The Advocate cited previous stay orders in similar matters where unconditional waiver was granted. On the other hand, the Revenue argued that the construction was not for the Tamil Nadu Government but for the Tamil Nadu Police Housing Corporation Ltd., intended for the residential use of Tamil Nadu Government personnel.

The Tribunal considered both submissions, including previous stay orders in similar matters. Referring to a specific stay order in a different case, the Tribunal found a prima facie case in favor of the appellant, stating that the houses constructed by the Police Housing Corporation were owned by the State Government and allotted to police personnel. The Tribunal granted waiver and stay against the impugned demand and connected appeals. Following this precedent, the Tribunal granted waiver of pre-deposit of dues arising from the impugned orders for admission of appeal, with a stay on the collection of such dues during the pendency of appeals. The judgment was dictated and pronounced in open court by the Tribunal.

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