2010 (12) TMI 493 - AT - Service Tax

Waiver of pre-deposit - The appellant submits that Service tax was not collected by the appellant and due to his financial unsoundness tax liability could not be discharged - Therefore if suitable instalments are granted and a reasonable amount is ordered to be paid, the Appellant shall come forward to make deposit of the demand to that extent - Held that direct the appellant to make deposit of Rs. 6.00 lakhs (Rupees Six lakhs) in equal monthly instalments of Rs. 50,000/- each - Failure to make deposit of any of the instalment the Revenue shall be at liberty to realise its entire dues in accordance with law - After the last instalment is paid showing deposit of aggregate amount of Rs. 6.00 lakhs, the appellant shall be at liberty to mention for hearing of its appeal - Compliance is fixed for 30th December, 2011 . Considering the financial hardship of the appellant,direct the appellant to mention for fixing early hearing date on the date of compliance itself.

Summary

Issues:
Service tax liability due to financial unsoundness leading to demand and penalty, request for suitable instalments for payment, directions for deposit and compliance, stay on realisation of balance demand during appeal.

Analysis:
The appellant, represented by a consultant, argued that due to financial unsoundness, they could not discharge the Service tax liability, resulting in a demand of Rs. 12,11,833/- along with a penalty of equal amount. The appellant, a retired Army personnel, expressed willingness to abide by the law and requested suitable instalments for payment. The Tribunal directed the appellant to deposit Rs. 6.00 lakhs in equal monthly instalments of Rs. 50,000/- each starting from December 2010. The appellant was instructed to produce a copy of the challan before the jurisdictional authority within two weeks of making each deposit to avoid coercive recovery measures. Failure to deposit any instalment would vacate the order, allowing the Revenue to recover the entire dues. The appellant was given the liberty to mention for an appeal hearing after the last instalment of Rs. 6.00 lakhs was paid by December 30, 2011. The Tribunal also directed the appellant to request an early hearing date on the compliance day due to financial hardship. The realisation of the balance demand was stayed during the appeal's pendency to provide relief to the appellant. The judgment was dictated and pronounced in open court by a specific Member.

This detailed analysis covers the issues of Service tax liability, request for instalments, directions for deposit and compliance, and the stay on realisation of the balance demand during the appeal, as outlined in the judgment delivered by the Appellate Tribunal CESTAT, NEW DELHI.