2011 (2) TMI 729 - AT - Service Tax

Waiver of pre-deposit - the demand of Service Tax raised and confirmed by the adjudicating authority as Annexure-I to the show-cause notice, they seem to be, prima facie , export of services. As regards the exemption claimed by the assessee, prima facie , the certifications done by the appellant for compliance with the US Law for Satyam Computer Services Limited may get the benefit of Notification No.59/98-ST as amended by 15/2002-ST. As regards the other two contentions, we find that the matter needs to be gone into in detail which can be done only at the time of final disposal of the appeal. At this juncture, we are of the view that the amount of Rs. 19.37 lakhs deposited by the appellant during the proceedings before the adjudicating authority is enough deposit to hear and dispose off the appeal.The application for waiver of pre-deposit of the balance amounts is allowed and recovery thereof stayed till the disposal of the appeal.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of Service Tax and Penalty amounts.

Analysis:
The appellant filed a stay petition seeking a waiver of pre-deposit of Rs.2,85,41,148/- for Service Tax along with interest and Rs.2,85,00,000/- for Penalty. The demand arose due to alleged non-payment of Service Tax for services provided and exceeding the prescribed limits for availing input stage Service Tax credit. The appellant argued that services provided to foreign companies were eligible for exemption under specific notifications and that the remittances made to foreign companies did not fall under the category of Chartered Accountant services. Additionally, the appellant claimed that the Service Tax credit was availed from a service provider and was not utilized for providing exempted services. The appellant had already deposited Rs. 19.37 lakhs under the presumption of liability for foreign remittances, which was deemed sufficient for hearing and disposal of the appeal.

The JCDR reiterated the findings of the adjudicating authority regarding the demand. After considering the submissions from both sides, the Tribunal found that the demand for Service Tax appeared to be related to the export of services. The Tribunal also noted that the appellant's certifications for compliance with US Law for a specific company might qualify for exemption under relevant notifications. However, the Tribunal determined that further detailed examination of the matter was necessary for final disposal of the appeal. Therefore, the Tribunal concluded that the amount of Rs. 19.37 lakhs already deposited by the appellant was adequate for hearing and disposing of the appeal. Consequently, the application for waiver of pre-deposit for the remaining amounts was allowed, and recovery was stayed until the appeal's final disposal. The judgment was pronounced and dictated in open court by the judges.