2012 (5) TMI 243 - AT - Service Tax

Waiver of predeposit Held that - waiver of predeposit and stay of recovery should be granted in respect of the balance amount inasmuch as a major part of the Service Tax amount admittedly stands deposited and sizeable part of the balance amount is claimed to have been paid by way of debit in CENVAT account. payment from CENVAT account claimed by the party, was not considered by the learned Commissioner. waiver of pre-deposit allowed

Summary

Issues: Waiver of pre-deposit and stay of recovery in a Service Tax case involving payment from CENVAT account.

Waiver of Pre-deposit:
The appellant had paid a significant amount in cash towards the impugned demand of Service Tax and also made a payment from their CENVAT account, which was not considered by the adjudicating authority. The learned counsel highlighted this discrepancy and submitted relevant documents in support. The JCDR argued that a major part of the demand was related to "Airport Services" and cited a favorable Supreme Court decision. The Tribunal acknowledged the payments made by the appellant and granted waiver of pre-deposit and stay of recovery for the balance amount of Service Tax, interest, and penalties. This decision was based on the understanding that a substantial portion of the Service Tax amount had already been deposited, and the CENVAT account payment was not duly considered by the Commissioner.

Stay of Recovery:
The Tribunal considered the appellant's plea for stay of recovery in light of the payments made towards the Service Tax demand. It was noted that a significant sum had been paid in cash, and an additional amount was debited from the CENVAT account, which had not been taken into account by the Commissioner. The Tribunal, after examining the records and submissions from both sides, decided to grant a stay of recovery for the remaining balance of Service Tax, interest, and penalties. This decision was made to ensure fairness and to address the discrepancy in the treatment of the CENVAT account payment, which had not been properly considered during the adjudication process.

Conclusion:
The Appellate Tribunal, in a case concerning Service Tax payment and waiver of pre-deposit, granted relief to the appellant by acknowledging the payments made both in cash and from the CENVAT account. The Tribunal emphasized the importance of considering all relevant payments and upheld the appellant's request for waiver of pre-deposit and stay of recovery for the remaining balance of the Service Tax amount, interest, and penalties. This decision aimed to ensure justice and fairness in the adjudication process, highlighting the significance of properly accounting for all payments made by the appellant.