2005 (2) TMI 845 - AT - Central Excise

Summary

Issues:
Waiver of pre-deposit of Service Tax Amount and penalty for being classified as a 'Consulting Engineer' for Service Tax purposes.

Analysis:
The appellant sought a waiver of pre-deposit of Service Tax Amount and penalty totaling &8377; 5,67,813 and &8377; 11,37,126 respectively, contending that they were wrongly classified as 'Consulting Engineer' for Service Tax purposes. They argued that they only provided drawing and design services without offering consultancy advice to clients. The appellant relied on a previous Bench judgment in the case of Araco Corpn. v. CCE and a Board Circular to support their claim. The appellant requested a separate hearing for their case, emphasizing its distinct nature from other matters. The Board Circular dated 10-9-2004 was highlighted to assert that the appellant's activities were not covered by the Act before that date.

The Tribunal, consisting of Dr. S.L. Peeran and T.K. Jayaraman, considered the appellant's contentions and the supporting Bench judgment and Board Circular. After hearing the learned SDR, the Tribunal found merit in the appellant's argument based on the previous case and the Circular. The Tribunal acknowledged the appellant's position and granted a waiver of pre-deposit for the disputed amounts, including the penalty. The recovery of the amounts was stayed until the appeal's final disposal, with the appeal scheduled for a hearing on 7-3-2005. The Tribunal's decision was influenced by the precedent set in the Araco Corpn. case and the relevant Board Circular, leading to the allowance of the stay application and the waiver of pre-deposit for the appellant.