PEOPLES CHOICE Vs. COMMISSIONER OF SERVICE TAX, BANGALORE

JUDGEMENT

(1.) THE appellant is required to pre -deposit Rs 99,48,570/ - out of which they have pre -deposited Rs. 50 lakhs before the issue of show cause notice. The appellants are providing security services and are also rendering other services like providing drivers, nurses, male nurses, loaders and unloaders, office assistants, housekeeping, receptionist operators etc., to their clients. The revenue brought the supply of these persons for employment under the category of Business Auxiliary Services. This has been contested on the ground that providing of employees cannot be considered as promotion or marketing or sale of goods as defined under the term Business Auxiliary Services. There is no promotion or marketing of services involved and hence service tax of Rs. 20 lakhs will not be payable. For the balance amount, the appellants contended that, it is barred by time as the department was well aware of the services provided and all the details were known to the department. Learned Counsel submits that for the reasons pointed out, the appellants have a very strong case on merits and hence prays for waiver of the balance amount.

(2.) 1 Learned DR reiterated the Departmental contentions.

(3.) ON prima facie consideration, we agree with the appellant that supply of personnel cannot be considered as an activity of promotion or marketing or sale of goods as defined under the term Business Auxiliary Services. Therefore, Rs. 20 lakhs on this account is not liable to be pre -deposited. For the balance of the amount, the appellants have pleaded time -bar. The appellants were covered already under the service tax and all the details had been furnished to the department. Therefore, prima facie appellants have a strong case for seeking waiver for balance of the amount. Stay application is allowed granting waiver of pre -deposit and staying its recovery till the disposal of the appeal. Appeal to come up for hearing in its turn.