2011 (5) TMI 547 - AT - Service Tax

Waiver of pre-deposit - Rent-a-Cab Operator - Held that;- As appellant has been claiming abatement of 60% on the total amount received under Notification No. 9/2004 dated 9.7.2004, as amended from time to time, which was not allowed by the lower authority for non-production of evidence the service tax demand confirmed by the adjudicating authority needs to be recalculated - As the appellant has not made out prima facie case for complete waiver of pre-deposit - Therefore, direct the appellant to pre-deposit the amount of Rs. 25,000/- within a period of eight weeks from today and report compliance .

Summary

Issues:
Service tax demand confirmation, abatement claim denial, pre-deposit requirement

Service tax demand confirmation:
The adjudicating authority confirmed a service tax demand of Rs. 57,133 along with interest and penalties under Sections 76 & 78 of the Finance Act, 1994. The first appellate authority upheld this confirmation based on the appellant providing services as a 'Rent-a-Cab Operator.' However, the appellant claimed a 60% abatement on the total amount received under Notification No. 9/2004, which was not allowed due to non-production of evidence. The tribunal noted that if evidence had been produced, the abatement should not have been denied. Consequently, the tribunal ordered the recalculation of the service tax demand confirmed by the adjudicating authority.

Abatement claim denial:
The appellant's claim for a 60% abatement on the total amount received was not allowed by the lower authority due to the lack of evidence. The tribunal emphasized that if the evidence could have been presented, the denial of the abatement should not have occurred. Therefore, the tribunal directed the recalculation of the service tax demand confirmed by the adjudicating authority.

Pre-deposit requirement:
The tribunal found that the appellant did not establish a prima facie case for a complete waiver of the pre-deposit of the amounts involved. Considering the facts and circumstances of the case, the tribunal directed the appellant to pre-deposit an amount of Rs. 25,000 within eight weeks and report compliance before the Assistant Registrar. Upon such compliance, the condition of pre-deposit for the balance amount would be waived, and recovery stayed until the appeal's disposal.

This judgment highlights the importance of providing evidence to support abatement claims, the necessity of pre-deposit in certain cases, and the tribunal's authority to recalibrate service tax demands based on the evidence presented.