2011 (5) TMI 548 - AT - Service Tax

Waiver of pre-deposit - services of Management, Maintenance or Repair Services - period for May 2007 to March 2008 - Held that - As the services rendered by the appellant i.e., retreading of the old tyres may get covered under the category of Management, Maintenance or Repair Services from 16.6.2005 and the demand raised in the current proceedings is for May 2007 to March 2008. It is also find that the appellant may be eligible for the benefit of abatement given under Notification No.12/2003-ST. But as the appellant has not made out a prima facie case for complete waiver of the demands he is directed to pre-deposit an amount of ₹ 2,50,000/- and report compliance.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of Service Tax amount confirmed.
2. Classification of services provided as 'Management, Maintenance or Repair Services'.
3. Eligibility for abatement under Notification No.12/2003-ST.
4. Requirement for pre-deposit and stay of recovery pending appeal.

Analysis:
1. The stay petition was filed seeking a waiver of pre-deposit of Rs.6,98,503/- confirmed as Service Tax along with interest and penalties under Section 77 and 78 of the Finance Act, 1994. The demand arose from services categorized as 'Management, Maintenance or Repair Services' provided during May 2007 to March 2008.

2. The appellant contended that the services of re-treading tyres did not fall under the mentioned category of services. However, the departmental representative referred to a previous Tribunal decision where similar services were held liable for Service Tax. The Tribunal found that the re-treading of old tyres could indeed be classified under 'Management, Maintenance or Repair Services' from a specified date, and the appellant might be eligible for abatement under Notification No.12/2003-ST.

3. Despite the appellant's arguments, the Tribunal held that a prima facie case for complete waiver of the demands was not established. Therefore, the appellant was directed to pre-deposit Rs.2,50,000 within four weeks and report compliance. Upon compliance, the condition for pre-deposit of the balance amount was waived, and recovery stayed pending appeal. Additionally, the Registry was instructed to list related appeals together for final disposal.

4. In conclusion, the Tribunal's decision balanced the appellant's request for waiver with the legal obligations regarding pre-deposit and stay of recovery during the appeal process. The judgment provided a clear directive for compliance and further proceedings, ensuring a fair consideration of the issues involved.