2011 (9) TMI 814 - AT - Service Tax

Application for Demand - Service tax demand for the period 6/2005 to 3/2008 Appellant submitted demand relating to the period from April,2008 is fully time barred Held that - Appellant demands waiver of balance amount of sum as he voluntarily paid a sum though deficient amount mentioned in MOA Department decided demand upto the period March 2008 is time barred. Service tax demand for the period 4/2008 to 3/2009 Demand is payable Directed to pay amount Subject to the payment waiver be made in respect pre-deposit dues.

Summary

Issues:
1. Time limitation for service tax demand
2. Cum-tax benefit consideration
3. Waiver of balance demand

Analysis:
1. The main issue before the Appellate Tribunal was the time limitation for the service tax demand. The advocate for the applicant argued that the demand for the period up to March 2008 was time-barred. He contended that the extended period of limitation should not have been invoked as all relevant details were furnished to the Department earlier. However, for the demand relating to the period of April 2008 to March 2009, it was acknowledged that the demand fell within the normal period of limitation. The Tribunal, after considering the submissions, agreed that the demand up to March 2008 was indeed time-barred, but the demand for the subsequent period was payable.

2. Another issue raised was the consideration of cum-tax benefit. The advocate highlighted that although the demand for the period of April 2008 to March 2009 was within the normal period of limitation, the authorities had failed to provide the cum-tax benefit. This aspect was duly noted by the Tribunal in their analysis of the case.

3. The final issue addressed was the waiver of the balance demand. The advocate informed the Tribunal that a certain amount had already been voluntarily paid by the applicant. He requested a waiver of the balance demand for the period from June 2005 to March 2008 based on the amount already paid. The Tribunal, after careful consideration of all submissions and records, directed the applicant to deposit a specific sum within a stipulated period. Upon compliance with this directive, the Tribunal waived the pre-deposit of the balance dues and stayed the recovery of the remaining amount until the appeals were disposed of.