2013 (11) TMI 864 - AT - Service Tax

Stay application - Demand of service tax - Held that - Applicant rendered various services like Industrial or Commercial Construction Service, Management, Maintenance or Repair Service, Rent-a-Cab Service etc. during the financial years 2004-05 and 2006-07. Even though the Applicant had received payments against these services from the service recipients, but failed to discharge the service tax on the gross amount received by them - Prima facie case not in favour of assessee - Stay granted partly.

Summary

Issues: Waiver of predeposit of Service Tax and penalties under the Finance Act, 1994

The judgment by the Appellate Tribunal CESTAT Kolkata, delivered by Dr. D.M. Misra and Dr. I.P. Lal, JJ., dealt with a Stay Petition for waiver of predeposit of Service Tax amounting to Rs.3,48,123/- and penalties imposed under Section 78 of the Finance Act, 1994, along with penalties under various provisions of the same Act. The Applicant failed to appear despite notices, leading to the hearing proceeding in their absence. The Revenue's representative highlighted that the Applicant had provided services like Industrial or Commercial Construction Service, Management, Maintenance or Repair Service, Rent-a-Cab Service between 2004-05 and 2006-07 but had not paid the due service tax on the total amount received for these services. The Tribunal observed that the lower authorities' orders confirmed the Applicant's failure to discharge the service tax on the received payments. Consequently, the Tribunal directed the Applicant to deposit 50% of the Service Tax amount within 8 weeks and report compliance by a specified date. Failure to comply would result in the dismissal of the Appeal without further notice to the Applicant, while depositing the amount would lead to the waiver of the remaining dues and a stay on recovery during the Appeal's pendency.

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