2013 (10) TMI 1059 - AT - Service Tax

Waiver of Pre-deposit - Overseas Agency - The applicant is an overseas agency and had rendered services - Assessee submitted that during the course of hearing before the Ld. Commissioner (Appeal), they have deposited an amount of Rs.4.00 Lakhs in compliance with the direction of the Ld. Commr. (Appeals) issued under Section 35F of CEA, 1944 as applicable to Service Tax cases - the amount is sufficient for hearing of their appeal - In these circumstances, pre-deposit of the balance dues adjudged is waived and its recovery stayed during the pendency of the appeal stay granted.

Summary

Issues: Application for waiver of pre-deposit of Service Tax and penalty under Section 78 of the Finance Act, 1994.

Analysis:
- The applicant, an overseas agency, sought waiver of pre-deposit of Service Tax amounting to Rs.12.61 Lakhs and an equal penalty imposed under Section 78 of the Finance Act, 1994.
- The applicant contended that they had rendered services to the Govt. of Orissa under a contract where the service receiver was responsible for discharging all taxes, including income tax on the income earned by them.
- The applicant argued that the service tax demanded included TDS amount and reimbursable expenses, which were denied adjustment against the gross receipt.
- During the hearing before the Ld. Commissioner (Appeal), the applicant had already deposited Rs.4.00 Lakhs in compliance with the direction of the Ld. Commr. (Appeals) issued under Section 35F of CEA, 1944 applicable to Service Tax cases.
- The Ld. A.R. for the Revenue did not dispute the deposit made by the applicant as reflected in the impugned order.
- The Tribunal noted that the applicant had complied with the direction of the Ld. Commr. (Appeal) by depositing Rs.4.00 Lakhs, which was deemed sufficient for the hearing of their appeal.
- Considering the circumstances, the Tribunal waived the pre-deposit of the balance dues adjudged and stayed its recovery during the pendency of the appeal.

Conclusion:
The Appellate Tribunal CESTAT KOLKATA, comprising Dr. D.M. Misra and Dr. I.P. Lal, allowed the application for waiver of pre-deposit of Service Tax and penalty under Section 78 of the Finance Act, 1994, based on the deposit made by the applicant and the circumstances presented during the hearing.