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2012 (6) TMI 243 - AT - Service TaxConsulting Engineering Service and Erection, Commissioning or Installation Service Held that - As the demand has been confirmed without taking into consideration the scope of all the contracts, therefore predeposit of the Service tax, interest and penalties are waived. Stay Petition is allowed.
Issues: Application for waiver of pre-deposit of Service Tax and penalties.
In this case, the Applicant filed an Application for waiver of pre-deposit of Service Tax amounting to Rs. 45,22,167.00 and penalties. The demand was confirmed due to the Applicant providing taxable services falling under "Consulting Engineering Service" and "Erection, Commissioning or Installation Service." The Applicant contended that the Adjudicating Authority only considered two contracts out of several entered into with Government and private organizations. The demand was confirmed by subtracting the amounts from these two contracts from total receipts, treating the remaining amount as taxable service without considering the scope of work under all contracts. The Applicant argued that the demand was confirmed without taking into account the terms and conditions of all contracts, leading to the waiver of predeposit of Service tax, interest, and penalties. The Stay Petition was allowed, and the Registry was directed to list the present Appeal along with Appeal No. ST/225/09 on a specified date. The Applicant highlighted that the Revenue also filed an Appeal on the ground that the Adjudication Order did not consider services provided to other clients like TISCO. The Tribunal acknowledged the discrepancy in considering only two contracts and confirmed the demand without analyzing the scope of work under all contracts. The Tribunal found merit in the Applicant's argument that the demand was confirmed without due consideration of all contract terms and conditions. Consequently, the Tribunal granted the waiver of predeposit of Service tax, interest, and penalties. The Stay Petition was allowed, and the case was scheduled to be listed along with another Appeal filed by the Revenue. The decision emphasized the importance of considering all relevant contract details before confirming demands related to taxable services to ensure a fair and comprehensive assessment.
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