2013 (1) TMI 23 - AT - Service Tax

Short payment of Service tax - Stock broking services - demand of pre deposit - Held that - The appellant has not made out a prima facie case for complete waiver of the amounts involved. Accordingly, the appellant are directed to make a further deposit of Rs.20,000 within a period of four weeks from today and report compliance on 22.10.2012.

Summary

Issues: Condonation of Delay in Filing Appeal, Short Payment of Service Tax, Waiver of Pre-deposit

Condonation of Delay in Filing Appeal:
The appellant filed an application for condonation of delay in filing the appeal before the Tribunal. The delay was attributed to the health condition of the authorized signatory's grandson, causing mental distress. The Tribunal, after considering the circumstances, condoned the delay and directed the Registry to accept the Stay Petition and appeal.

Short Payment of Service Tax:
The issue in this case pertained to stock broking services, with the Department noting a short payment of Service Tax amounting to Rs.92,688. The appellant sought to justify this before lower authorities based on limitation and merit. The first appellate authority directed a deposit of Rs.21,611, which was complied with. The Tribunal determined that a detailed examination of the reasons for the short payment was necessary.

Waiver of Pre-deposit:
Upon review, the Tribunal found that the appellant had not established a prima facie case for a complete waiver of the amounts involved. Consequently, the appellant was directed to make an additional deposit of Rs.20,000 within four weeks. If compliance was reported, the application for waiver of the remaining balance pre-deposit was allowed, and recovery stayed pending the appeal's disposal.

This judgment by the Appellate Tribunal CESTAT AHMEDABAD addressed the issues of condonation of delay in filing the appeal, short payment of Service Tax in relation to stock broking services, and the waiver of pre-deposit. The decision highlighted the importance of justifiable reasons for delay, the need for detailed examination of tax issues, and the requirement for compliance with deposit directives to seek waiver of pre-deposit amounts pending appeal resolution.