2011 (3) TMI 451 - AT - Service Tax

Waiver of pre-deposit - there is no dispute that during the relevant period, the assessee-appellant had collected amount of Service Tax from his customers but not deposited with the government and the availment of ineligible cenvat credit - appellant has already paid an amount of Rs.5,45,173/-, we direct the appellant to deposit balance amount of Service Tax and wrongly availed cenvat credit confirmed by the Adjudicating Authority and upheld by the learned Commissioner (A) along with interest, within a period of eight weeks from today and report compliance on 16 th May 2011 - application for waiver of pre-deposit of the amount of penalties involved is allowed and recovery thereof stayed till the disposal of the appeal

Summary

Issues: Stay petition for waiver of pre-deposit of Service Tax, wrongly availed cenvat credit, and penalties under Rule 15(2) of CCR, Section 77, and Section 78.

The Appellate Tribunal CESTAT, Bangalore, heard a stay petition for the waiver of pre-deposit of various amounts, including Service Tax, wrongly availed cenvat credit, and penalties. The Adjudicating Authority confirmed that the appellant had not deposited Service Tax collected from customers and wrongly availed cenvat credit during a specific period. The appellant argued financial difficulties as the reason for non-deposit of the amount. The Tribunal noted that financial difficulties cannot justify non-payment to the government. Despite the appellant having paid a portion of the amount, the Tribunal directed the appellant to deposit the balance of Service Tax and cenvat credit within eight weeks and report compliance. The application for waiver of pre-deposit of penalties was allowed, and recovery stayed pending appeal disposal. Compliance was to be reported by a specified date.