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Issues: Delay in filing appeal, Classification of service for service tax liability, Pre-deposit amount for appeal
Delay in filing appeal: The judgment addresses the issue of condonation of delay in filing the appeal. The applicant sought condonation of a 5-day delay in filing the appeal, attributing it to a mistake in the date of receipt of the impugned order. The learned Chartered Accountant representing the appellant informed the Bench about the error. The Tribunal, considering the marginal delay and its practice, decided to condone the delay and allowed the application for condonation. Classification of service for service tax liability: The judgment delves into the classification of services for service tax liability. The appellants were engaged in repair and re-conditioning of transformers. The Revenue initiated action against them for non-payment of service tax under the category of 'Repair and Maintenance Service.' The Chartered Accountant representing the appellants argued that the service provided should be classified as a Works Contract rather than repair and maintenance service. He contended that the services in question did not fall within the definition of repair and maintenance service as per Works Contract specifications. However, upon examination, the Tribunal found that the appellants were indeed involved in repair and reconditioning activities. The Tribunal noted that the appellants lacked a strong case on merits and highlighted that the lower authority had not considered any abatement towards the material cost while calculating the service tax liability. Pre-deposit amount for appeal: Regarding the pre-deposit amount for the appeal, the Tribunal ordered the appellants to pre-deposit a sum of Rs. 25,000 within three months. This pre-deposit would enable the waiver of the balance amount of service tax and interest, with recovery stayed until the appeal's disposal. The Tribunal also directed the Revenue not to take any coercive action during the pendency of the appeal. A compliance report was scheduled for a specified date. The judgment thus outlines the pre-deposit requirements and the consequential actions to be taken by both parties during the appeal process.
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