2016 (9) TMI 94 - AT - Service Tax

Appellate Tribunal grants stay against service tax demand for works contract service, orders 10% pre-deposit.

The Appellate Tribunal CESTAT NEW DELHI granted a stay application against a service tax demand of Rs. 1,10,25,578 for works contract service. The ... Stay application – demand of tax, interest and penalty – works contract service – construction service rendered to PHED – outside the scope of commerce and industry – abatement – Held that: - the building constructed for Jaipur Development authority would not fall outside the scope of being meant for commerce or industry – pre-deposit of 10% of demand to be paid for maintainability of appeal - recovery of the remaining adjudicated liability is stayed during pendency of the appeal – matter disposed off. The Appellate Tribunal CESTAT NEW DELHI considered a stay application against a service tax demand of Rs. 1,10,25,578 confirmed for works contract service. The appellant argued that the service was not for commerce or industry, citing a relevant case. The tribunal found merit in the appellant's argument and ordered a pre-deposit of 10% of the demand within eight weeks to stay recovery of the remaining liability during the appeal. Compliance was to be reported by 10.10.2016.