2013 (12) TMI 503 - AT - Service Tax

Waiver of pre-deposit of Service Tax - Renting of Immovable Property Services - Held that - entire amount of Service Tax liability has been secured by the order of the Hon ble Apex Court and we find that the appellant has made out a prima facie case for waiver of amount of interest and the penalty involved. Accordingly, the application for waiver of pre-deposit of amount of interest and penalty is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

Issues:
1. Early hearing of Stay Petition
2. Waiver of pre-deposit of Service Tax, interest, and penalty under Section 76 of Finance Act, 1994

Issue 1: Early hearing of Stay Petition
The Appellate Tribunal received a miscellaneous application for the early hearing of Stay Petition No.ST/S/304/2012 in Appeal No.ST/124/2012. The Deputy Registrar highlighted the substantial amount involved in the appeal, suggesting an expedited disposal of the Stay Petition. Both sides expressed readiness to argue the Stay Petition, leading to its consideration for immediate disposal. Consequently, the Tribunal allowed the Revenue's application for an out-of-turn hearing of the Stay Petition.

Issue 2: Waiver of pre-deposit of Service Tax, interest, and penalty
The Stay Petition sought a waiver of pre-deposit of Service Tax amounting to Rs.1,32,00,009, along with the associated interest and penalty under Section 76 of the Finance Act, 1994, concerning Renting of Immovable Property Services. The appellant's counsel referred to a writ petition by the Retailers Association of India before the High Court of Bombay, which led to a Supreme Court directive for depositing 50% of arrears in installments and providing a solvent surety for the remaining 50%. The appellant demonstrated compliance with the Supreme Court's order by depositing 50% of the amount and securing solvent sureties from specific entities within the Future Group Venture.

In light of the above, the Tribunal acknowledged the appellant's adherence to the Supreme Court's directives and the securement of the entire Service Tax liability. Consequently, the Tribunal found a prima facie case for waiving the interest and penalty amounts. Therefore, the application for the waiver of pre-deposit of interest and penalty was granted, and the recovery thereof was stayed pending the disposal of the appeal.