2013 (5) TMI 313 - AT - Service Tax

Service during warranty period - Liability to service tax - Revenue pray that as an interim measure if Revenue is protected during resolution of the dispute it may not have grievance. Held that - We direct the appellant to make a deposit of Rs. 1 lakhs to protect the interest of Revenue for expeditious disposal of the matter by ld. Commissioner (Appeals). The deposit shall be made by 31.03.2013 and an application shall made by Appellant before that authority to fix date of hearing. Accordingly decide the case on merits.

Summary

Issues: Liability to service tax on providing service during warranty period; Failure to provide details and evidence; Interim protection for Revenue during dispute resolution; Direction to make a deposit for expeditious disposal of the matter.

Liability to service tax on providing service during warranty period:
The appellant argued that providing service during the warranty period involved both sale of goods and service, thus exempting them from liability to service tax. However, the Finance Act, 1994 does not aim to tax commodities. The appellant's failure to provide sufficient details and evidence led to their unsuccessful outcome before the lower authorities. The Tribunal emphasized the importance of proving the case thoroughly before the appellate authorities.

Failure to provide details and evidence:
The Tribunal noted that the appellant's lack of details and evidence hindered their case before the lower authorities. It was highlighted that the burden of proof lies with the appellant to substantiate their claims, especially in matters concerning liability to service tax. The Tribunal stressed the significance of presenting comprehensive evidence to support their arguments effectively.

Interim protection for Revenue during dispute resolution:
Acknowledging the need for interim protection for the Revenue during the resolution of the dispute, the Tribunal directed the appellant to make a deposit of Rs. 1 lakh to safeguard the Revenue's interests. This deposit was intended to ensure expeditious disposal of the matter by the Commissioner (Appeals) and to facilitate a fair consideration of the case without imposing taxes on goods, which is beyond the scope of the Finance Act, 1994.

Direction to make a deposit for expeditious disposal of the matter:
The Tribunal directed the appellant to make the specified deposit by a set deadline and apply before the authority to schedule a hearing. Once the application was submitted, the authority was mandated to fix a hearing date, consider the evidence available, or submitted by the appellant, and make a decision based on the merits of the case. This directive aimed to expedite the resolution process and ensure a fair and efficient adjudication of the matter, ultimately leading to the disposal of both the stay application and appeal.