2013 (10) TMI 1114 - AT - Service Tax

Job Work - Exemption from service tax - Business auxiliary services - CENVAT credit Waiver of Pre-deposit Held that - The Applicant received the axles and wheels from M/s. Durgapur Steel Plant for machining work under the provisions of CENVAT Credit Rules - It is not in dispute that after carrying out necessary process, the axles and wheels were returned to M/s. Durgapur Steel Plant who ultimately discharged the duty on the said axles and wheels Following Mohata Coal Company (P) Ltd. 2013 (10) TMI 1109 - CESTAT KOLKATA - the Applicant could able to make out a prima facie case for total waiver of all dues - predeposit all dues was waived and its recovery stayed during pendency of the Appeal - Stay Granted.

Summary

Issues: Application for waiver of predeposit of Service Tax and penalty under Section 78 of the Finance Act.

In this judgment by the Appellate Tribunal CESTAT Kolkata, the Applicant sought waiver of predeposit of Service Tax and penalty amounting to Rs.2,25,43,687/- and Rs.2,25,06,967/- respectively, imposed under Section 78 of the Finance Act, along with penalties under other provisions. The Applicant was engaged in machining work on forged axles and wheels received from M/s. Durgapur Steel Plant on a job work basis. The axles and wheels were returned to M/s. Durgapur Steel Plant after processing, and duty was discharged by the latter. The Applicant presented a certificate from M/s. Durgapur Steel Plant to support their claim. The Tribunal noted that in a previous case involving similar circumstances, the waiver of predeposit was allowed for the same Applicant Firm and another assessee. After considering the submissions and records, the Tribunal found that the Applicant had made a prima facie case for the waiver of all dues adjudged. Citing a previous order, the Tribunal decided to waive the predeposit of all dues adjudged and stayed the recovery during the pendency of the appeal. The stay petition was allowed, and the decision was dictated and pronounced in open court.

This judgment primarily revolves around the issue of seeking a waiver of predeposit of Service Tax and penalty under Section 78 of the Finance Act. The Applicant, engaged in machining work on axles and wheels, requested the waiver based on the return of processed goods to the supplier who discharged the duty. The Tribunal, after examining the facts and considering a previous decision, granted the waiver due to the Applicant establishing a prima facie case for the same. The decision highlights the importance of presenting relevant documentation and establishing a strong case to support a request for waiver of dues under the Finance Act.

Overall, the judgment showcases the Tribunal's approach to considering applications for waiver of predeposit of Service Tax and penalties under the Finance Act. By referencing a previous order and assessing the facts presented by the Applicant, the Tribunal made a decision in favor of granting the waiver. The case underscores the significance of providing necessary evidence and making a compelling argument to support a request for waiver of dues. The Tribunal's decision to stay the recovery during the appeal process demonstrates a fair and balanced approach to addressing such applications and ensuring due process is followed.