Appeal Granted: Service tax order set aside for Union service unit. Waiver of interest due.

The Tribunal allowed the appellant's appeal, setting aside the Order-in-Original that demanded payment of service tax on facilities apart from deployment charges. The Tribunal held that the appellant, a service unit of the Union of India, was not liable to pay service tax based on legal precedents and the payment made in ignorance of the law. The appeal was granted for the waiver of interest due to non-liability to pay service tax and the payment made in ignorance of the law.

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Issues:
- Appeal against rejection of appeal by Commissioner (Appeals) upholding Order-in-Original.
- Discharge of service tax on facilities apart from deployment charges.
- Demand of differential service tax for a specific period.
- Confirmation of demand, interest, and penalty by adjudicating authority.
- Appeal against quantification of interest under Section 75 of the Finance Act.
- Legal sustainability of the impugned order.
- Applicability of service tax on activities of the appellant.
- Ignorance of law leading to non-contestation of duty in earlier litigation.
- Precedent decisions and case laws supporting non-liability to pay service tax.
- Waiver of interest due to ignorance and wrong payment of service tax.

Analysis:
1. The appeal challenged the rejection of the appellant's appeal by the Commissioner (Appeals), upholding the Order-in-Original that demanded the payment of service tax on facilities provided by the appellant apart from deployment charges. The appellant contended that the impugned order did not consider precedent decisions by the Tribunal and the Commissioner (Appeals) in similar cases.

2. The appellant was providing security services and was initially not discharging service tax on facilities like medical expenses, vehicle facility, etc. A notice was issued for the differential service tax for a specific period, which was confirmed along with interest and penalty by the adjudicating authority. The appellant appealed against the quantification of interest under Section 75 of the Finance Act, which was rejected by the Commissioner.

3. The appellant argued that their activity was not liable for service tax, citing various precedent decisions and case laws. They emphasized that the service tax paid was not legally correct due to ignorance of the law, and hence, interest should be waived. The appellant provided examples of other units where the demand was dropped by the Department on similar grounds.

4. The Department defended the impugned order, insisting on the inclusion of all facilities provided in the taxable value for service tax purposes. However, the Tribunal found that the appellant, being a service unit of the Union of India, was not liable to pay service tax based on the cited decisions and the fact that the service tax was paid in ignorance of the law.

5. Considering the submissions and precedents cited, the Tribunal concluded that the impugned order was not legally sustainable. It set aside the order, allowing the appeal of the appellant for the waiver of interest due to the non-liability to pay service tax and the payment made in ignorance of the law.

6. The Tribunal pronounced the order on 14/11/2019, granting relief to the appellant based on the legal analysis and precedent decisions presented during the proceedings.

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