2013 (12) TMI 1126 - AT - Service Tax

Waiver of the pre-deposit - Security Agency Services - Ex parte decree passed - Impostion of equivalent penalty - Held that - prima-facie, no case is made out for absolute grant of waiver and interests of Revenue warrant that the petitioner/appellant should deposit the entirety of the service tax assessed by the order in original as confirmed by the order of the appellate Commissioner (after taking credit for amounts of pre-deposit if any, before the appellate authority), including the component of interest and other penalties assessed but excluding the amount of penalty imposed under Section 78 of the Act - Partial stay granted.

Summary

Issues: Waiver of pre-deposit and stay of further proceedings

In this case, the petitioner sought waiver of the pre-deposit and stay of all further proceedings following an adjudication order. The petitioner provided Security Agency Services during a specific period but claimed to have also provided services later classified as Manpower Recruitment Agency Service. The adjudicating authority proceeded ex-parte due to the petitioner's lack of response, resulting in the imposition of service tax, penalty, interest, and penalties. The petitioner failed to comply with the pre-deposit requirement during the appeal process, leading to dismissal. The Tribunal directed a partial deposit and restored the appeal for hearing. The Commissioner (Appeals) ultimately confirmed the adjudication order and rejected the appeal on merits. The petitioner contended that part of the income received pertained to non-taxable services, requiring segregation of income with supporting documents seized by the Revenue. The Appellate Authority found the petitioner's claims inconsistent and lacking evidence. The petitioner argued a violation of natural justice due to the Revenue's failure to provide certain documents, but the Tribunal did not find a serious violation warranting waiver. The petitioner's delayed request for documents was also noted. The Tribunal ordered the petitioner to deposit the assessed service tax, interest, and penalties within a specified timeframe, failing which the waiver and stay would be dissolved.

This judgment addresses the issues of waiver of pre-deposit and stay of further proceedings following an adjudication order. It delves into the petitioner's claims regarding the nature of services provided, compliance during the appeal process, the Revenue's role, and considerations of natural justice. The Tribunal's decision emphasizes the importance of timely compliance and evidence in tax matters, ultimately requiring the petitioner to deposit the assessed amount within a set timeframe.