9911796707
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Issues:
1. Demand of service tax, interest, and penalties by lower authorities 2. Benefit of Notification No. 12/2003-S.T. dated 20-6-2003 3. Assessment of evidence regarding the value of goods and materials used in taxable service 4. Pre-deposit requirement under Section 35F of the Central Excise Act Analysis: 1. The judgment addresses the demand of service tax, interest, and penalties by lower authorities against the appellants for a specific period. The lower authorities imposed these financial obligations without granting the benefit of Notification No. 12/2003-S.T. dated 20-6-2003 to the assessee in determining the taxable value. The assessee, through their consultant, argued that they are entitled to the benefit of this notification as they possess documentary proof of the value of goods and materials used in providing the taxable service of maintenance and repair. On the other hand, the Revenue, represented by the SDR, contended that the proof provided by the assessee is insufficient as their invoices to customers did not separately indicate the value of goods and materials. The judgment recognizes the need to assess and appreciate the evidence presented by the assessee, indicating that this evaluation can be conducted during the final hearing of the appeal. 2. The judgment specifically highlights the importance of the benefit of Notification No. 12/2003-S.T. dated 20-6-2003 in determining the taxable value for the service provided by the appellants. It acknowledges the conflicting positions of the assessee and the Revenue regarding the availability and sufficiency of documentary proof related to the value of goods and materials used in the taxable service. The judge emphasizes the need for a thorough assessment of this evidence to make an informed decision, suggesting that this assessment can be deferred until the final hearing of the appeal. 3. The judgment directs the appellants to pre-deposit an amount of Rs. 20,000 under Section 35F of the Central Excise Act as a provisional measure. This pre-deposit is based on the estimate provided by the consultant, indicating that it would cover the outstanding service tax amount if the benefit of the notification is eventually granted to the appellants. The appellants are given a deadline of four weeks to make this pre-deposit and are required to report compliance by a specified date. In case of timely compliance, the judgment offers a waiver of the pre-deposit requirement and a stay of recovery concerning penalties, interest on tax, and the remaining tax amount, providing a temporary relief to the appellants pending the final resolution of the appeal.
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