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Issues Involved:
The issues involved in the judgment are the challenge to the order of the Tribunal directing the petitioners to deposit a certain amount as pre-deposit for maintaining an appeal, and the question of whether the petitioners should be exempted from payment of service tax for raw materials supplied by the service recipient. Challenge to Tribunal Order: The writ petition was filed challenging the Tribunal's order directing the petitioners to deposit Rs. 60 lacs as pre-deposit for maintaining the appeal. The petitioners argued that they should be exempted from payment of any service tax for raw materials supplied by the service recipient, as they were not purchased by the appellants. The Tribunal was urged to grant full waiver of the pre-deposit amount, citing previous decisions where full waiver was allowed in similarly situated cases. The High Court held that the Tribunal should have granted full waiver to the petitioner and set aside the order passed by the Tribunal, allowing the appeal to proceed without any pre-deposit requirement. Exemption from Service Tax: The petitioners contended that they should be exempted from payment of service tax for cement and steel raw materials supplied by the service recipient for construction, as they were not purchased by the appellants. Reference was made to a decision by the Tribunal and another decision by the Bombay High Court, where full waiver of pre-deposit was granted in similar cases. The High Court agreed with the petitioner's argument and held that the Tribunal should have allowed 100% waiver of the pre-deposit amount, as the show cause notice was issued beyond one year from the date of filing. The High Court granted full waiver to the petitioner and directed the Tribunal to decide the appeal on merits expeditiously.
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