Tribunal grants waiver and stay on recovery for appellant challenging service tax demand

The tribunal granted the appellant an unconditional waiver from pre-deposit and a stay on recovery during the appeal's pendency, as it found the service tax demand under 'supply of tangible goods for use' not prima facie sustainable in law. The appellant, engaged in renting and hiring cars/buses, argued that previous decisions classified such services under 'Rent-a-Cab-Service,' not the specific category claimed by the Revenue. The tribunal noted the lack of a new classification for 'supply of tangible goods for use' during the relevant period, supporting the appellant's position.

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Issues Involved:
Classification of service tax demand under 'supply of tangible goods service' instead of 'Rent-a-Cab-Service'.

Analysis:
The judgment pertains to an appeal against an Order-in-Original passed by the Commissioner Central Excise and Service Tax Pune-III, confirming a service tax demand of Rs. 1,19,26,341 along with interest and penalties against the appellant, a company engaged in renting and hiring of cars/buses to transport corporations. The appellant contended that previous tribunal decisions and high court rulings classified such services under 'Rent-a-Cab-Service,' not 'supply of tangible goods for use.' The Revenue argued that a new taxable service entry was created during the relevant period, making 'supply of tangible goods for use' more specific and thus justifying the demand. However, the tribunal noted that previous decisions consistently classified renting or hiring of buses/cabs under 'rent-a-cab services,' and no new classification for 'supply of tangible goods for use' was established. Consequently, the tribunal found the demand under the latter category not prima facie sustainable in law, leading to the grant of unconditional waiver from pre-deposit and stay on recovery during the appeal's pendency.

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