2008 (9) TMI 319 - AT - Service Tax

Tribunal grants waiver of pre-deposit for service tax in 'Interior Decorators Services' classification.

The Tribunal granted the appellant waiver of pre-deposit of service tax, stayed recovery, and scheduled a final hearing after the Commissioner classified ... Waiver of pre-deposit - Stay of recovery - Classification of services - Interior Decorator Service v. Horticulture/Gardening services - Time-bar / larger periodClassification of services - Interior Decorator Service v. Horticulture/Gardening services - Whether the appellant's activities of planting of trees, garden plants and maintenance of grassy lawn fall within the scope of 'Interior Decorator Service' or are horticulture/gardening activities outside that scope. - HELD THAT: - The Tribunal noted that the Original authority had initially accepted the appellant's plea that their activities related to planting of trees, garden plants and grassy lawns were horticulture/gardening in nature and had dropped proceedings under the show cause notice. The Commissioner in review held the activity to fall under 'Interior Decorator Service'. The Tribunal, on prima facie consideration, found merit in the appellant's contention that gardening and horticulture activities of the kind undertaken by the appellant do not fall within the scope of interior decorator services. This conclusion was reached on the prima facie materials and the nature of services described, favouring the assessee at the interim stage.On prima facie view, the appellant's gardening/horticulture activities do not fall within 'Interior Decorator Service'.Waiver of pre-deposit - Stay of recovery - Time-bar / larger period - Whether pre-deposit of the disputed service tax should be waived and recovery stayed pending disposal of the appeal. - HELD THAT: - Having found prima facie merit in the appellant's classification plea and noting that the appellant also contested invocation of a larger period (time-bar), the Tribunal exercised its discretionary power at the interim stage. In view of the prima facie satisfaction favouring the assessee on classification and the contest on limitation, the Tribunal allowed the stay application and directed waiver of the pre-deposit and stayed recovery of the disputed amount until final disposal of the appeal.Waiver of pre-deposit granted and recovery stayed until disposal of the appeal.Final Conclusion: The Tribunal granted interim relief by waiving the pre-deposit and staying recovery of the disputed service tax, having taken a prima facie view that the appellant's activities are horticulture/gardening rather than 'Interior Decorator Service', and listed the appeal for final hearing. The appellant sought waiver of pre-deposit of service tax. Original authority dropped proceedings, but Commissioner held activity falls under 'Interior Decorators Services.' Tribunal granted waiver of pre-deposit, stayed recovery, and scheduled final hearing.