2012 (7) TMI 349 - AT - Service Tax

Stay petition - Waiver of pre-deposit - Service tax liability - Technical Inspection and Certification Service provided - Appellant was informed on 01.08.2006 by the office of the Commissioner of Service Tax that their activities would not fall under the category of services rendered and they would not be covered under the Service Tax - Show cause notice was issued to the appellant on 13.04.2010 for the period October 2004 to March 2006 Held that - Department itself has taken a stand that the appellant s services would not fall under the category of services of Technical Inspection and Certification Services, invocation of larger period by the authorities seems to be not in consonance with the law - show cause notice is blatantly time-barred and on this ground itself order set aside and appeal allowed in favor of assessee

Summary

Issues involved:
1. Stay petition for waiver of pre-deposit of service tax amount with interest and penalties under Section 76 of the Finance Act, 1994.
2. Service tax liability on the appellant for Technical Inspection and Certification Service from October 2004 to March 2006.

Analysis:
1. The appellant filed a stay petition seeking waiver of pre-deposit of service tax amount with interest and penalties. The issue revolved around the service tax liability on the appellant for Technical Inspection and Certification Service provided from October 2004 to March 2006. The Tribunal found that the appeal could be disposed of as the issue was narrow. After considering submissions and records, the main issue was identified as whether the services provided by the appellant fell under the category of Technical Inspection Services.

2. The appellant, a State Government entity, was initially informed by the Commissioner of Service Tax that their activities would not attract service tax. However, a subsequent reversal by the same office required the appellant to pay service tax on the services rendered. Despite a show cause notice issued in 2010 for the period from October 2004 to March 2006, the Tribunal noted that the department's own stance regarding the service tax liability created a time-barred situation. The Tribunal held that the invocation of a larger period by the authorities was not in line with the law, leading to the conclusion that the show cause notice was time-barred. Consequently, the impugned order was set aside, and the appeal of the appellant was allowed.

This detailed analysis of the judgment highlights the key issues, arguments presented, and the Tribunal's decision regarding the service tax liability of the appellant for Technical Inspection and Certification Service.