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Issues:
1. Liability of service tax on commission received by the appellant. 2. Request for stay against the recovery of penalty imposed under Sections 75A, 76, 77, and 78 of Finance Act, 1994. Analysis: 1. The appellant, registered for paying service tax on Business Auxiliary Services, did not pay service tax on commission earned from selling offset printing machines. A service tax liability of Rs. 3,48,387/- for July 2004 to March 2006 was identified. The appellant, after being informed of the liability, paid the full amount of service tax with interest for six months in 2006. The dispute was regarding the penalty amounting to approximately Rs. Seven Lakhs imposed under various sections of the Finance Act, 1994. The appellant sought a stay against the penalty recovery, acknowledging the undisputed service tax liability and interest already paid. 2. The appellant's Chartered Accountant contended that the appellant was unaware of the service tax liability on received commissions and believed in good faith that no tax was due. The appellant accepted the liability and paid for the subsequent six months after being informed by the partner and due to financial constraints. The appellant requested leniency under Section 80 of the Finance Act, 1994, for waiving the penalties. The SDR argued that the appellant, being registered, had no justification for ignorance of the law, and penalties were discussed in detail by the Commissioner (Appeals). 3. The Tribunal considered both submissions and noted that the appellant had a significant commission income exceeding Rs. 42 Lakhs over about 2.5 years, indicating a substantial organization. This raised doubts about the appellant's claim of ignorance of the law and non-payment of service tax. Consequently, the appellant failed to establish a strong case for a complete waiver of the pre-deposit requirement. The Tribunal directed the appellant to deposit Rs. two lakhs within eight weeks and report compliance by a specified date. Subject to this pre-deposit, the Tribunal granted a waiver for the balance penalty amount and allowed a stay during the appeal process.
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