2013 (5) TMI 805 - AT - Service Tax

Waiver of pre deposit - Banking and other Financial Services - Held that - On a prima facie analysis of the material on record, considered in the context of the definition of the taxable banking and financial services read with the provisions of Section 65(105)(zm), we find no infirmity in the adjudication orders warranting grant of waiver of pre-deposit and stay of proceedings pursuant to the adjudication orders impugned - assessee shall pre-deposit the liability as assessed by the three adjudication orders, within six weeks Partial stay granted.

Summary

Issues:
1. Assessment of Service Tax liability on a Non-Banking Finance Institution for providing associated services.
2. Compliance with registration, filing of returns, and remittance of Service Tax.
3. Validity of adjudication orders and waiver of pre-deposit.

Analysis:
1. The judgment deals with three substantive appeals arising from adjudication orders assessing a Non-Banking Finance Institution to Service Tax for providing associated services related to the core activity of lending money. The services provided, such as village survey, data verification assistance, and education on products, fall within the taxable service category of 'Banking and other Financial Services' as per the Finance Act, 1994. The assessee failed to register, file returns, or remit Service Tax, leading to initiation of proceedings by the Revenue.

2. The adjudicating authority, after issuing show cause notices and considering responses from the assessee, concluded that the institution was liable to Service Tax on the gross incomes received from the activities related to 'Banking and Financial Services.' The judgment upholds the authority's decision, finding no infirmity in the adjudication orders. The appellant was directed to pre-deposit the assessed liability within six weeks and report compliance by a specified date. Failure to comply would result in the rejection of the appeal for non-payment.

3. The judgment also addresses the issue of waiver of pre-deposit and stay of proceedings. After a thorough analysis of the material on record and relevant legal provisions, the Tribunal rejected the stay applications and emphasized the importance of compliance with the pre-deposit requirement. The decision was made after hearing arguments from the appellant's counsel and the Departmental Representative for the Revenue. The judgment highlights the necessity of adhering to statutory obligations and timelines in tax matters to avoid adverse consequences.