2011 (5) TMI 558 - AT - Service Tax

Waiver of pre-deposit - taxability of services - demand confirmed under the following heads - (i) Manpower Recruitment or Supply Agency Service (ii) Business Auxiliary Service (iii) Business Support Service (iv) Commercial Training or Coaching Service - Held that - The total demand which has been confirmed by the adjudicating authority in Order-in-Original comes to approximately Rs. 4.97 crores and assessee have paid approximately Rs. 4.61 crores including the amount appropriated in the order, hence, the issue needs to be gone into detail and that can be done only at the time of final disposal of the appeal - Thus an amount of Rs. 4.62 crores deposited by the appellant as enough deposit for the purpose of disposal of the appeal - Application for waiver of predeposit of the balance amount involved is allowed and recovery thereof stayed till the disposal of the appeal.

Summary

Issues:
Stay petition for waiver of pre-deposit of service tax amount, interest, and penalties under various sections of the Finance Act, 1994.

Analysis:
The appellant filed a stay petition seeking a waiver of pre-deposit of a significant amount, including service tax, interest, and penalties under different sections of the Finance Act, 1994. The demand was confirmed by the adjudicating authority under various heads such as Manpower Recruitment or Supply Agency Service, Business Auxiliary Service, Business Support Service, and Commercial Training or Coaching Service. The adjudicating authority's decision was based on a detailed and reasoned order, leading to a total demand of approximately Rs. 4.97 crores. The appellant had already paid around Rs. 4.61 crores, with evidence of deposit provided to the Joint Commissioner of Central Excise. The issue at hand revolved around the taxability of services provided by the appellant, requiring a detailed examination at the time of the final disposal of the appeal.

The Tribunal carefully considered the submissions from both parties and acknowledged the need for a detailed examination of the taxability issue during the final disposal of the appeal. Recognizing the substantial amount already deposited by the appellant (Rs. 4.62 crores out of Rs. 5.98 crores demanded), the Tribunal deemed it sufficient for the purpose of appeal disposal. Consequently, the application for waiver of pre-deposit of the remaining balance was allowed, and recovery of the outstanding amount was stayed until the appeal's final disposal. Both parties requested an expedited hearing due to the substantial amount involved, leading the Tribunal to direct the matter to be listed for disposal on 18th August 2011. The decision was pronounced and dictated in court, ensuring clarity and legal validity in the proceedings.