CESTAT allowed the appeal in part and disposed of it. The...

CESTAT allowed the appeal in part and disposed of it. The Tribunal held the appellant entitled to the 67% concessional exemption under N/N.18/2005-ST for services rendered prior to N/N.1/2006-ST; demands based on denial of that exemption were set aside. Service-tax demands premised on maintenance/repair charges were negated as the appellant acted as a pure agent; demands under "club or association service" and "security agency service" (guard charges) were also annulled as receipts were refundable deposits or penalties, not taxable consideration. Recovery of previously paid CENVAT-related tax, interest and 25% penalty was upheld and appropriated. Invoked extended limitation and all penalties were set aside for bona fide interpretation and absence of suppression.

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