2013 (10) TMI 908 - AT - Service Tax

Waiver of pre deposit - Customs House Agency Service - Held that - applicant has placed reconciliation statement explaining the difference between ST-3 return and MISC Report, inasmuch as a portion of differential amount was adjusted in their income for credit note adjusted for excess billing, tax paid by recipient under GTA service, godown rent tax was not paid since the services were prior to 1.6.2007 etc. which will be examined in detail at the time of appeal hearing. At any event, we find that the applicant has already paid Rs.40 lakhs, which is sufficient for waiver of pre-deposit of balance dues. Accordingly, we grant waiver of pre-deposit of balance dues and stay recovery thereof during the pendency of the appeal - stay granted.

Summary

Issues: Application for waiver of pre-deposit of tax, differential amount of taxable value, GTA service tax payment, abatement claimed in CHA service, reconciliation statement, stay application.

Waiver of Pre-deposit of Tax:
The applicant filed an application seeking waiver of pre-deposit of tax amounting to Rs.1,40,87,194/- along with interest and penalty for the period between April 2004 to March 2007. The applicant, registered under various service tax categories, presented a reconciliation statement to explain the variance between the taxable value in ST-3 returns and computer/MISC reports. The applicant had already paid Rs.40 lakhs, which the Tribunal deemed sufficient for the waiver of the remaining balance dues. Consequently, the Tribunal granted the waiver of pre-deposit of the balance dues and stayed the recovery during the pendency of the appeal.

Differential Taxable Value and GTA Service Tax Payment:
The demand was raised based on the differential amount of taxable value as reflected in the ST-3 returns compared to the computer and MISC reports. The applicant's counsel highlighted that no tax was payable on the differential amount, pointing to specific details in the appeal documentation. It was argued that the tax for GTA service had already been discharged by another entity, and abatement was claimed for CHA service. The applicant had also adjusted a portion of the differential amount in their income, citing reasons such as credit note adjustments, tax payment by the recipient for GTA service, and non-payment of godown rent tax for services predating June 1, 2007. The Tribunal acknowledged these explanations and agreed to examine them further during the appeal hearing.

Reconciliation Statement and Stay Application:
The applicant provided a reconciliation statement elucidating the differences between the ST-3 return and MISC Report. The Tribunal noted that the reconciliation statement detailed adjustments made, including income credit note adjustments and tax payments by the service recipient for GTA service. Considering the partial payment of Rs.40 lakhs and the explanations provided, the Tribunal granted the waiver of pre-deposit of the remaining balance dues and stayed the recovery process pending the appeal hearing. The stay application was allowed by the Tribunal, ensuring no immediate recovery actions would be taken against the applicant.