2010 (12) TMI 429 - AT - Service Tax

Waiver of predeposit - In terms of Notification No. 12/2003-S.T., dated 20-6-2003, the value of taxable service which is equal to the value of goods and materials sold by the service provider to the recipient of service, which can be excluded while the assessee has deducted higher amount by including fabrication charges and transport charges - No prima facie case for total waiver of predeposit - Direct predeposit of Rs. 2,00,000/- (Rupees two lakhs only) within a period of four weeks - Hence, predeposit of the balance tax, interest and penalty shall stand waived.

Summary

The Appellate Tribunal CESTAT, Chennai heard an application for waiver of predeposit of service tax of Rs. 4,02,944/- along with interest and penalty. The demands were confirmed as the assessee had deducted higher amounts by including fabrication and transport charges, which were not allowed under Notification No. 12/2003-S.T. The Tribunal directed predeposit of Rs. 2,00,000 within four weeks, with the balance tax, interest, and penalty waived upon compliance. Failure to comply would result in vacation of stay and dismissal of the appeal. Compliance to be reported by 31-1-2011.