2010 (7) TMI 702 - AT - Service Tax

Waiver of predeposit - The demand is confirmed after denying benefit of Notification 32/04-ST dated 3-12-2004 on the ground that the abatement of 75 per cent on the total freight charges in respect of the service provided by a goods transport agency to a customer in relation to the transportation of the goods by road subject to the condition that the provider of service gave a declaration that no credit of duty paid on inputs or capital goods used for providing taxable service has been taken aid or the goods transport agency has not availed the benefit of Notification 12/2003-ST dated 20-6-2003 - The revenue submitted that during verification, the appellants failed to produce necessary consignment notes having necessary declaration, hence, the demand is rightly made - Thus, it is not a case for total waiver of demand of service tax -

Summary

Issues:
Waiver of predeposit of service tax and penalty based on Notification 32/04-ST dated 3-12-2004.

The judgment pertains to an application for waiver of predeposit of service tax and penalty amounting to Rs. 8,70,814. The demand was confirmed after denying the benefit of Notification 32/04-ST dated 3-12-2004. The issue arose as the appellants failed to produce necessary consignment notes with the required declaration during the adjudication proceedings. The appellants argued that subsequent to verification by the Superintendent, they provided certain consignment notes, which were accepted. However, they admitted failure to produce 475 consignment notes. The revenue contended that since the necessary consignment notes with declaration were not produced during verification, the demand was rightly made. The adjudicating authority had directed verification of evidences, allowing benefit where the necessary declaration was present and denying it where absent. The tribunal found it inappropriate for a total waiver of the service tax demand, noting the lack of financial hardship pleaded. Consequently, the appellants were directed to deposit Rs. 2.00 lakh within eight weeks, in addition to the amount already deposited. Upon compliance, predeposit of the remaining service tax, interest, and penalty was waived, with recovery stayed during the appeal's pendency.

In conclusion, the tribunal's decision balanced the circumstances of the case by requiring a partial deposit from the appellants to secure the waiver of the remaining service tax, interest, and penalty. The ruling emphasized the importance of complying with the necessary declarations as per the Notification to avail of the benefit. The judgment highlighted the significance of providing complete documentation during verification to support claims and avoid demand confirmations. The tribunal's approach aimed to ensure fair treatment while upholding the legal requirements for waiver consideration.