2011 (6) TMI 357 - AT - Service Tax

Waiver of pre-deposit - Service tax liability on under-writing service and other allied services - Held that - As Appellant submits that they are disputing the entire service tax liability and also submits that out of the confirmed demand of Rs. 3.55 crores, the appellant has deposited an amount of Rs. 3.11 crores along with interest hence, Application for waiver of pre-deposit of the balance amounts involved is allowed and recovery thereof stayed till the disposal of the appeal.

Summary

Issues: Liability to pay service tax on services received, waiver of pre-deposit of certain amounts.

Analysis:

The Appellate Tribunal CESTAT, Bangalore, addressed the issue of liability to pay service tax on services received by the appellant, particularly for under-writing service and other allied services. The adjudicating authority held the appellant liable under Section 66A of the Finance Act, 1994, as the recipient of services. The appellant disputed the entire service tax liability, having already deposited a substantial amount of Rs. 3.11 crores along with interest out of the confirmed demand of Rs. 3.55 crores. The appellant sought waiver of pre-deposit for the remaining balance amounts involved.

Upon hearing both sides and examining the records, the Tribunal noted the appellant's contestation of the service tax liability on various grounds. Considering the amount already deposited and the interest paid, totaling Rs. 3.11 crores and Rs. 22.37 lakhs respectively, the Tribunal deemed it sufficient for the appeal's disposal. Consequently, the Tribunal allowed the application for waiver of pre-deposit for the remaining amounts and stayed the recovery until the appeal's final resolution. The judgment was pronounced and dictated in court by the Tribunal.