2012 (6) TMI 789 - AT - Service Tax

Summary

Issues involved: Application for waiver of predeposit of service taxes and penalties u/s 75, 76 & 77 of the Finance Act, 1994.

Summary:
The applicants sought waiver of predeposit of service taxes totaling to significant amounts along with penalties imposed under relevant sections of the Finance Act, 1994. The dispute arose from issues including payment through Department of Telecommunication (DOT) and the acceptance of evidences by the ld. Commissioner. The applicants contended that certain documentary evidences were not considered by the Commissioner, especially in relation to village panchayat telephone and cenvat credit. They argued that the Department had miscalculated the service tax liability at varying rates. On the other hand, the Department argued that the appellants failed to justify the availed cenvat credit based on internal documents. The appellants, in response, claimed to have provided all necessary documents including invoices for cenvat credit. After hearing both parties, the Tribunal decided to remand the case to the Commissioner for a fresh examination without requiring any predeposit, allowing both sides to present additional documents and ensuring a fair hearing process. The appeals were allowed by way of remand, and stay petitions were disposed of.