2006 (10) TMI 401 - AT - Service Tax

Summary

Issues:
1. Appellant's request for unconditional stay for service tax.
2. Allegation of suppression of relevant facts by the appellant.
3. Time bar aspect of the case.
4. Appellant's defense regarding non-payment of service tax by ONGC.
5. Pre-deposit amount and penalties confirmed by the Commissioner (Appeals).

Analysis:
1. The appellant requested an unconditional stay for the service tax confirmed in the orders passed by the Deputy Commissioner and Commissioner (Appeals). The Tribunal noted that the appellant, a registered service tax assessee since 1999, did not include details of services rendered to M/s. ONGC in their returns. The appellant claimed they did not receive the service tax component of the bills raised to ONGC. However, the Tribunal found this plea unacceptable, stating that as a registered assessee, they were required to pay the service tax upon receiving payment for services rendered.

2. The demand in question pertained to the period from 1999-2000 to 2003-04, with a notice issued in 2004 alleging suppression of relevant facts. The Tribunal observed that prima facie, the appellant did not have a strong case on the time bar aspect, indicating doubts about the appellant's defense regarding the non-inclusion of service tax details.

3. The appellant's main defense centered around ONGC's alleged non-payment of service tax, leading to difficulties in paying the tax to the Department. The appellant's representative claimed they would pay the service tax to the Department once ONGC settled the tax component of the bills. However, the Tribunal did not find a prima facie case for total waiver of the pre-deposit.

4. Considering the amounts involved, the Tribunal ordered the appellant to deposit a further sum of Rs. 10 lakhs within eight weeks, failing which the appeal would be dismissed. The appellant had already paid Rs. 6 lakhs prior to the show cause notice, and penalties amounting to Rs. 45,07,733 were confirmed by the Commissioner (Appeals). Upon compliance with the deposit, the balance amount and penalties would be waived until the appeal's disposal.

5. The Tribunal set a compliance reporting date of December 21, 2006, and disposed of the application accordingly, outlining the specific deposit requirements and the consequences of non-compliance.