2013 (10) TMI 960 - AT - Service Tax

Import of services - Commission paid to foreign entity for raising an amount as Foreign Currency Convertible Bonds - Held that - Since the appellant has deposited the entire amount of service tax liability and disputing the issue on merits, we consider the same as enough deposit to hear and dispose the appeal. Accordingly, application for the waiver of pre-deposit of the balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal - stay granted.

Summary

Issues Involved:
Stay petition regarding service tax liability, interest, and penalties imposed on the appellant for paying service tax on commission to a foreign entity raising Foreign Currency Convertible Bonds (FCCBs).

Analysis:

1. Service Tax Liability and Deposit:
The appellant contested the imposition of service tax liability, interest, and penalties by the adjudicating authority on the grounds of paying service tax on commission to a foreign entity raising FCCBs. The appellant, for the purpose of stay, paid the entire amount of service tax liability and interest during the investigation. The departmental representative confirmed the deposit of the entire amount. The Tribunal acknowledged the appellant's contestation of the issue on merits and found it debatable. Considering the deposit made by the appellant and the debatable nature of the issue, the Tribunal allowed the application for the waiver of pre-deposit of the balance amounts involved. Consequently, the recovery of the balance amounts was stayed until the appeal's disposal.

2. Legal Issues and Final Disposal:
The appellant indicated that there were several legal issues to be raised and addressed at the time of the final disposal of the appeal. The Tribunal recognized the appellant's intention to contest the issue on merits during the final disposal. The Tribunal's decision to allow the waiver of pre-deposit and stay the recovery of the balance amounts until the appeal's disposal indicates a consideration of the appellant's submission regarding the legal issues to be raised and addressed during the final disposal of the appeal.

3. Decision and Order:
In the judgment delivered by the Tribunal, it was noted that the appellant had paid the entire amount of service tax liability and interest during the investigation, indicating compliance with the initial requirements. The Tribunal considered the issue as debatable and allowed the application for the waiver of pre-deposit, enabling the appellant to proceed with the appeal without further financial obligations until its final disposal. The order for the waiver of pre-deposit and the stay of recovery of the balance amounts until the appeal's disposal was pronounced in the court, ensuring a fair hearing and resolution of the legal issues raised by the appellant.

This detailed analysis of the judgment highlights the key aspects of the issues involved, the appellant's actions, the Tribunal's considerations, and the final decision rendered in the case.