2009 (6) TMI 102 - AT - Service Tax

CESTAT: Pre-deposit of Rs. 50,000 ordered. Service Tax recovery stayed pending appeal. Issue debatable.

The Appellate Tribunal CESTAT, Ahmedabad, ordered the appellant to make a pre-deposit of Rs. 50,000 within four weeks, with the balance of the Service Tax ... Service tax not paid on services provided during Navratri to celebrate international Garba Mahotsav - appellant submits that the appellants are not eligible to service tax in view of the fact that the international Garba Mahotsav was organised by the Government and it is neither official, social or business nature but a religious function. - Whether the function for which the service tax has been demanded is a religious function or not and whether it is liable to service tax, requires to be considered in detail. Since the issue is debatable and the function was organised by the Government, we grant the stay partly The Appellate Tribunal CESTAT, Ahmedabad, consisting of Members B.S.V. Murthy and Ashok Jindal, heard an appeal from an appellant represented by Shri Mukesh C. Dhruv against an order to pay Service Tax of Rs. 4,00,562 for services provided during the Navratri celebration. The appellant argued that the services provided at an international Garba Mahotsav organized by the Government were not subject to Service Tax due to the religious nature of the event. The JDR contended that the event was not religious and upheld the lower authorities' decision. The Tribunal found the issue debatable and ordered a pre-deposit of Rs. 50,000 within four weeks, with the balance Service Tax recovery stayed pending the appeal. The decision was pronounced in court, pending further proceedings.