Statutory exemption from service tax on non-commercial Government buildings justified waiver of pre-deposit and stay of recovery.

Section 98(1) of the Finance Act, 2012 barred levy or collection of service tax on management, maintenance or repair of non-commercial Government buildings for the protected period before Section 66B came into force. As the demand related to work on Defence Ministry buildings and fell prima facie within that statutory bar, interim relief was granted. Waiver of pre-deposit and stay of recovery were therefore allowed in favour of the appellant.

---

---

Issues: Whether waiver of pre-deposit and stay of recovery should be granted in view of the statutory exemption from service tax for management, maintenance or repair of non-commercial Government buildings.

Analysis: Section 98(1) of the Finance Act, 2012 provided that no service tax shall be levied or collected in respect of management, maintenance or repair of non-commercial Government buildings for the relevant period up to the coming into force of Section 66B. The demand related to activities undertaken in respect of buildings belonging to the Defence Ministry, Government of India, and the period covered by the demand fell within the protected period. On that basis, the demand was treated as covered by the exemption provision for the purpose of interim relief.

Conclusion: Waiver of pre-deposit and stay of recovery were granted in favour of the appellant.

Final Conclusion: Interim relief was granted because the impugned demand was prima facie covered by the statutory bar on levy and collection of service tax for the specified category of Government buildings during the relevant period.

Ratio Decidendi: Where a statutory provision bars levy and collection of service tax for a specified category and period, a demand falling prima facie within that bar justifies waiver of pre-deposit and stay of recovery.

---