2013 (10) TMI 298 - AT - Service Tax

Waiver of pre deposit - Manpower recruitment and supply agency service - Held that - prima facie, find no serious error in the conclusion of the adjudicating authority. The Ld. Counsel now desires to marshal additional evidence before the Tribunal in support of his plea as to receipt of sale proceeds on the immovable property and refund from Income Tax Department. No fresh evidence can be entertained by the Tribunal at this stage and without any application for production of additional evidence in this appeal. Prima facie, however, it would appear that the petitioner had not properly structured his case before the authorities below. - Service tax alongwith interest directed to be deposited - stay granted towards penalty.

Issues:
1. Assessment of service tax liability, interest, and penalties under Section 78 of the Finance Act, 1994.
2. Appeal against the appellate authority's decision to scale down the tax liability.
3. Relief sought for waiver of pre-deposit and stay of further proceedings.
4. Rejection of defence claim regarding the origin of deposited amounts.
5. Consideration of additional evidence at the Tribunal stage.
6. Granting of waiver of pre-deposit subject to conditions.

Analysis:

1. The judgment addresses the initial assessment order dated 08.05.2012, which imposed a service tax liability of Rs.13,25,555/- along with interest and penalties under Section 78 of the Finance Act, 1994. The CCE&ST (Appeals), Meerut-I subsequently allowed the appellant's appeal on 27.12.2012, reducing the tax liability to Rs.9,23,240/- while confirming interest and penalties. The appellant challenges this decision in the present appeal.

2. The appellant sought relief in the form of waiver of pre-deposit and a stay on further proceedings for the realization of the adjudicated amount. The appellant contended that only a portion of the funds in their bank statements pertained to taxable services, while the rest were proceeds from the sale of land and refunds from the Income Tax Department. However, the appellant failed to provide evidence supporting these claims, leading to the rejection of their defense by the adjudicating authority.

3. The Tribunal, while considering the appeal, noted the lack of substantial evidence presented by the appellant at earlier stages. The appellant's request to introduce additional evidence at the Tribunal level was deemed inappropriate without a formal application. Despite this, the Tribunal acknowledged the shortcomings in the appellant's case presentation and decided to grant a waiver of pre-deposit, subject to specific conditions.

4. The Tribunal found no serious error in the adjudicating authority's conclusion regarding the tax liability assessment. While the appellant's counsel expressed a desire to submit additional evidence related to the sale proceeds and refunds, the Tribunal clarified that such evidence cannot be entertained without a formal application. The Tribunal emphasized the importance of structuring the case effectively before lower authorities to avoid procedural issues at later stages.

5. Ultimately, the Tribunal granted the waiver of pre-deposit contingent upon the appellant depositing the determined service tax amount along with interest within a specified timeframe. Failure to comply with these conditions would result in the rescission of the waiver and dismissal of the appeal. The Tribunal set a deadline for compliance and instructed reporting on the same by a specific date to monitor adherence to the conditions outlined in the judgment.

6. In conclusion, the judgment addresses various issues related to the assessment of service tax liability, the appellant's defense claims, the consideration of additional evidence, and the granting of a waiver of pre-deposit subject to specific conditions. The Tribunal's decision reflects a balance between procedural requirements and the appellant's request for relief, emphasizing the importance of presenting a well-structured case at all stages of the legal process.

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