2015 (12) TMI 1219 - AT - Service Tax

Tribunal Waives Pre-Deposit, Delays Decision on Service Tax Exemption Eligibility

M/s Madras Security Printers Pvt Ltd Versus Commissioner of Service Tax, Chennai

The Tribunal granted a waiver of pre-deposit during the appeal's pendency, deferring a conclusive decision on the appellant's claim for service tax ... Waiver of pre deposit - Exemption under Notification No.14/2004, dated 10.09.2004 - Held that:- there shall be waiver of pre-deposit during pendency of the appeal - No doubt, the notification above grants benefit in respect of services listed in section 65 (19) of the Finance Act, 1994, but with the rider that service of the nature appearing therein should be provided in relation to agriculture, printing, textile processing or education to claim service tax exemption. It appears to the commonsense that printing industry is envisaged to enjoy tax exemption when if that is labour intensive without being highly sophisticated or mechanized. However, we do not express any opinion on merit at this stage. - Stay granted. Issues:Interpretation of Notification No.14/2004 for service tax exemption in printing industry service.Analysis:The appellant claimed exemption under Notification No.14/2004 for availing services of a foreign commission agent in the printing industry. The appellant argued that the services provided by the agent fall under the category of printing industry service and should be exempt from service tax. The appellant relied on a previous Tribunal decision to support this contention.The Revenue, however, opposed the appellant's claim, stating that the benefit of the notification is not applicable, as determined by the Adjudicating authority. The Revenue's position was that the notification benefit claimed by the appellant should be denied.After hearing both sides and examining the records, the Tribunal considered the nature of the services provided and the requirements of the notification. The Tribunal noted that the notification grants benefits for specific services listed in the Finance Act, with the condition that the services should be related to agriculture, printing, textile processing, or education to qualify for service tax exemption.The Tribunal acknowledged that the printing industry could potentially qualify for tax exemption under the notification if it is labor-intensive and not highly mechanized. However, the Tribunal refrained from expressing a definitive opinion on the merit of the claim at the interim stage. The Tribunal decided that the intention of the notification and its applicability to the printing industry would be further examined during the final hearing.In conclusion, the Tribunal granted a waiver of pre-deposit during the pendency of the appeal, emphasizing the need for a thorough assessment of the printing industry's eligibility for tax exemption under Notification No.14/2004 in the final hearing.