2013 (10) TMI 683 - AT - Service Tax

Waiver of pre deposit - services relating to pile foundation involving driven cast-in-situ RCC piles, Bored cast-in-situ piles, pre-cast single length RCC piles, pre-case jointed RCC piles etc. for commercial and residential infrastructure. - Held that - Prima facie, we find that the applicant is not contesting the demand of tax of Rs.1,59,53,404/- excepting for minor calculation of Rs. 22 lakhs. We have also considered that the applicant has collected this amount and retained with them and therefore they are liable to pay the penalty. In view of that, we direct the applicant to make a pre-deposit of Rs.60,00,000/- (Rupees sixty lakhs only) towards tax and further amount of Rs. 30,00,000/- (Rupees thirty lakhs only) towards penalty within a period of eight weeks and report compliance on 10.10.2013. - stay granted partly.

Summary

Issues:
1. Change of cause title from Commissioner of Central Excise to Commissioner of Service Tax.
2. Stay application for waiver of pre-deposit of tax, interest, and penalty.
3. Demand of service tax on various contracts and materials supplied.
4. Pre-deposit amount determination and waiver.

Analysis:
1. The judgment addresses the issue of changing the cause title from Commissioner of Central Excise to Commissioner of Service Tax, Chennai. The Revenue filed an application for this change, which was allowed by the Tribunal after hearing both sides. The cause title was amended accordingly to reflect the correct authority.

2. The applicant filed a stay application seeking waiver of pre-deposit of tax, interest, and penalty. The applicant was involved in providing services related to pile foundation for commercial and residential infrastructure. The Commissioner confirmed demands for non-payment of service tax on various contracts and materials supplied. The Tribunal heard both sides and considered the submissions made.

3. The Tribunal noted that the applicant had already deposited certain amounts towards the tax and interest liabilities. The learned counsel argued for the waiver of penalty pre-deposit on specific issues. The Tribunal considered the submissions and directed the applicant to make a pre-deposit towards tax and penalty within a specified period. The Tribunal analyzed the applicant's liability based on the amounts collected and retained by them.

4. Upon analysis, the Tribunal found that the applicant was not contesting a specific tax demand and directed them to make a pre-deposit towards tax and penalty. The Tribunal specified the amounts to be deposited within a given timeframe. Upon compliance with the pre-deposit, the Tribunal waived the pre-deposit of the remaining balance and stayed the recovery during the appeal's pendency. The judgment was dictated and pronounced in open court, providing a clear directive for the applicant's compliance.

This comprehensive analysis of the judgment highlights the key issues addressed by the Tribunal, the arguments presented by both sides, and the Tribunal's decision regarding the change of cause title and the waiver of pre-deposit of tax, interest, and penalty.