2013 (1) TMI 760 - AT - Service Tax

Summary

Issues involved: Application for waiver of pre-deposit of service tax, penalty, and interest u/s service tax laws.

Summary:
The applicant filed an application seeking waiver of pre-deposit of service tax, penalty, and interest amounting to Rs. 7,48,822. The impugned order revealed that the applicant was involved in providing services categorized under Man-power Recruitment or Supply Agency Service. The applicant claimed they were developing software as per instructions from M/s. Infosys Technologies Ltd., not supplying manpower. However, the Commissioner (Appeals) heavily relied on a previous Tribunal decision related to a similar case. The applicant failed to provide evidence supporting their claim of supplying software, as billing was based on the manpower provided to M/s. ITL, working under their supervision. This indicated a prima facie case of supplying manpower rather than software. Consequently, the applicant was directed to pre-deposit Rs. 3 lakhs within six weeks. Upon compliance with this directive, the pre-deposit of the remaining amount was waived, and recovery stayed during the appeal process. Compliance was to be reported by 26.02.2013.