2013 (5) TMI 180 - AT - Service Tax

Service tax/penalty/interest - u/s 77 & 78 - Held that - Only issue to be decided in this case is regarding the quantum of service tax liability on all the three appellants which needs to be gone into detail. Thus, this exercise would be better if it is left to the adjudicating authority. Therefore we set aside the impugned orders and remit the matters back to the adjudicating authority to reconsider the issue afresh after following the principles of natural justice.

Summary

Issues:
Stay petitions for waiver of pre-deposit of service tax, penalty, and interest amounts confirmed by lower authorities on the ground of liability for site formation services. Dispute over the amount to be paid, penalties imposed, and sub-contractor status of the appellants.

Analysis:
The judgment pertains to stay petitions filed by three appellants seeking a waiver of pre-deposit of service tax, penalty, and interest amounts confirmed by lower authorities. The appellants, sub-contractors of the main contractor, do not dispute the service tax liability but contest the quantum to be paid and the penalties imposed. The counsel argues that prior to a specific date, sub-contractors were not liable to discharge service tax, resulting in overpayment by the appellants. The Superintendent (A.R.) notes that the appellants have already made substantial deposits.

The Tribunal finds that the issue requires detailed verification of the appellants' calculations, necessitating further examination during the final hearing. Noting the amounts already deposited by each appellant, the Tribunal deems them sufficient to proceed with the appeals. Both parties agree that the key issue to be determined is the quantum of service tax liability on the appellants, requiring a thorough examination best left to the adjudicating authority.

Therefore, the Tribunal sets aside the impugned orders and remits the matters back to the adjudicating authority for a fresh consideration following the principles of natural justice. The appellants are granted the opportunity to present supporting evidence, and the adjudicating authority is directed to reconsider the issue, taking into account any evidence produced by the appellants and relevant legal provisions. Ultimately, all the appeals are allowed by way of remand, leaving the final decision on the quantum of service tax liability to the adjudicating authority.