Tribunal classifies service as renting immovable property, waives pre-deposit, stresses tax complianceWaiver of pre deposit - Business Support Service - whether as per the agreement signed by the appellant with regard to hiring of high quality custom built equipment and facilities for R&D/software/BPO/IT operations would make it a provider of Business Support Service - held that:- equipment and facilities like lifts, air-conditioning etc. went along with the building which was given on rent by it and therefore the service rendered was renting of immovable property service on which the service ta... ... ... Issues:
1. Classification of taxable service as Business Support Service or renting of immovable property service.
2. Whether the deposits made by the appellant are sufficient to meet the statutory requirements for waiver of pre-deposit of remaining adjudicated liabilities and stay recovery during the appeal.

Issue 1: Classification of Taxable Service

The appellant filed a stay application and appeal against an Order-in-Original confirming a service tax demand under Business Support Service. The appellant argued that the service provided was renting of immovable property due to the equipment and facilities provided along with the building rented for R&D/software/BPO/IT operations. The Tribunal noted the dispute regarding the classification of the service and acknowledged the deposits made by the appellant towards the demand and interest. The Tribunal found that the deposits met the statutory requirements, and therefore waived the pre-deposit of remaining liabilities and stayed the recovery during the appeal.

Issue 2: Sufficiency of Deposits for Waiver of Pre-Deposit

The Tribunal considered the appellant's contention that the service provided was renting of immovable property due to the equipment and facilities accompanying the building rented. The appellant had deposited a significant amount towards the demand and interest as acknowledged in the show cause notice. The Tribunal, in light of the deposits made, determined that the requirements of Section 35F of the Central Excise Act, 1944, read with Section 83 of the Finance Act, 1994, were satisfied. Consequently, the Tribunal waived the pre-deposit of the remaining adjudicated liabilities and stayed the recovery during the pendency of the appeal, considering the nature of the dispute and the deposits made by the appellant.

By analyzing the issues involved in the judgment, the Tribunal found that the service provided by the appellant could be classified as renting of immovable property service rather than Business Support Service. Furthermore, the Tribunal determined that the deposits made by the appellant were sufficient to meet the statutory requirements for waiver of pre-deposit and stay of recovery during the appeal process. The decision highlighted the importance of proper classification of taxable services and the significance of meeting statutory requirements for pre-deposit in tax disputes. Waiver of pre deposit - Business Support Service - whether as per the agreement signed by the appellant with regard to hiring of high quality custom built equipment and facilities for R&D/software/BPO/IT operations would make it a provider of Business Support Service - held that:- equipment and facilities like lifts, air-conditioning etc. went along with the building which was given on rent by it and therefore the service rendered was renting of immovable property service on which the service tax has been paid. Having regard to the facts that the dispute relates to classification of taxable service and an amount of Rs. 86,29,621/- towards impugned demand along with interest of Rs. 17,49,460/- stands deposited as acknowledged in the related show cause notice dated 13.9.2010, we are of the view that these deposits are sufficient to meet the requirement of Section 35F Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. Requirement of pre-deposit of the remaining adjudicated liabilities and stay recovery thereof during pendency of the appeal. - Stay granted. M/s Indo Hong Kong Industries Pvt. Ltd. Versus CCE & ST, Delhi
Service Tax
2015 (8) TMI 204 - CESTAT NEW DELHI - TMI
CESTAT NEW DELHI - AT
Dated:- 1-6-2015
No. ST/Stay/51477/2014 in ST/51236/2014-CU(DB) - Stay Order No. 51959/2015
Service Tax
Mr. G. Raghuram and Mr. R.K. Singh, JJ. For The Appellant : Shri A.K. Batra, CA & Shri Varun Gaba, Advocate For The Resondent : Shri Amresh Jain, D.R. ORDER Per R.K. Singh: Stay application along with appeal has been filed against Order-in-Original No. 04/ST/SRB/2013-14 dated 29.11.2013 in terms of which service tax demand of Rs. 1,02,21,578/- has been confirmed under Business Support Service along with interest and penalties. A demand of Rs. 10,176/- along with interest and penalties has also been confirmed and the same along with interest has been deposited and appropriated. The stay is sought in respect of only demand confirmed in respect of Business Support Service amounting to Rs. 1,02,21,578/- on the ground that the service rendered is renting of immovable property and not Business Support Service and in any case an amount of Rs. 86,29,621/- has been deposited towards the impugned service tax and interest of Rs. 17,49,460/- has also been deposited. 2. The dispute is whether as per the agreement signed by the appellant with regard to hiring of high quality custom built equipment and facilities for R&D/software/BPO/IT operations would make it a provider of Business Support Service. The appellant has contended that the equipment and facilities like lifts, air-conditioning etc. went along with the building which was given on rent by it and therefore the service rendered was renting of immovable property service on which the service tax has been paid. Having regard to the facts that the dispute relates to classification of taxable service and an amount of Rs. 86,29,621/- towards impugned demand along with interest of Rs. 17,49,460/- stands deposited as acknowledged in the related show cause notice dated 13.9.2010, we are of the view that these deposits are sufficient to meet the requirement of Section 35F Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994. Accordingly, we waive the requirement of pre-deposit of the remaining adjudicated liabilities and stay recovery thereof during pendency of the appeal.
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