9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 963 - AT - Service TaxStay application - Business Support Services - Penalties under Sections 77 & 78 - Held that - adjudicating authority, has recorded that the amount has been written off in the books of account of the appellant in respect of their associated enterprises. Since the amount has been written off, it would not amount to receipt of any payment to the appellant, on which, the Service Tax liability, prima facie, would arise - Following decision of Sify Technologies Ltd. v. CCE Chennai 2010 (11) TMI 232 - CESTAT, CHENNAI - Stay granted.
Issues:
Waiver of pre-deposit of Service Tax liability, interest, and penalties under Sections 77 & 78 of Finance Act, 1994 based on writing off an amount due from an associate company for common services. Analysis: The appellant filed a Stay Petition seeking waiver of pre-deposit of Rs. 2,64,57,777/- confirmed as Service Tax liability, interest, and penalties. The counsel argued that the lower authorities confirmed the amounts due to the writing off of an amount from their associate company for common services. Referring to the judgment in the case of Sify Technologies Ltd. v. CCE Chennai, it was contended that any amount written off before 10-5-2008 for associate enterprises' transactions should not be considered as an amount receivable. The dispute centered around whether the demand for Service Tax was valid based on the writing off of amounts from associate enterprises. The Senior Departmental Representative (SDR) reiterated the adjudicating authority's findings, stating that writing off amounts is a form of book adjustment. However, upon careful consideration, the Tribunal noted that the amount had indeed been written off in the appellant's books concerning their associated enterprises. The Tribunal reasoned that since the amount was written off, it did not constitute a payment received by the appellant, which would trigger Service Tax liability. The Tribunal found that the judgment in the Sify Technologies Ltd. case favored the appellant's position. Consequently, the Tribunal held that the appellant had established a prima facie case for the waiver of pre-deposit of the amounts in question. As a result, the application for the waiver of pre-deposit was granted, and the recovery of the amounts was stayed pending the disposal of the appeal. The decision was dictated and pronounced in court by the Tribunal.
|
