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Issues involved: Stay petition for waiver of pre-deposit of service tax liability, interest, and penalty u/s 78 of the Finance Act, 1994 due to non-disclosure of correct gross value for services rendered.
Summary: The appellant filed a stay petition seeking waiver of pre-deposit of an amount confirmed as service tax liability, interest, and penalty u/s 78 of the Finance Act, 1994. The appellant had not disclosed the correct gross value for services rendered, specifically not including the value of free material supplied by service receivers during the period 10-9-2004 to 30-9-2008. The appellant's counsel argued that the entire demand is time-barred and that the cost of free materials should not be included in the valuation. They claimed to have correctly disclosed the value of amounts received for services rendered, including miscellaneous materials, and sought the benefit of abatement of 67% u/s Notification No. 15/2004-S.T. The departmental representative supported the findings of the authorities, emphasizing the inclusion of free supplies in service tax valuation rules from 14-5-2006. The Tribunal noted that the limitation plea may not apply for the periods 2006-07 and 2007-08, as the appellant should have been aware of the law. However, a detailed examination of the issue was deemed necessary at the final disposal of the appeal. The Tribunal concluded that the appellant had not established a case for complete waiver of the amounts involved. In the absence of a plea of financial hardship, the appellant was directed to deposit a specified amount within four weeks, with further compliance due by a specified date. Upon compliance, the application for waiver of pre-deposit of the remaining amounts was allowed, and recovery stayed pending appeal disposal.
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