2014 (1) TMI 560 - AT - Service Tax

Waiver of pre deposit - Testing and painting of old and used gas cylinders - Benefit of Notification No. 12/2003-S.T., dated 2-6-2003 - Held that - applicants were undertaking the process of testing and painting of old and used gas cylinders. Prima facie they are providing maintenance and repair service and paint is used as consumable for providing such service. We find no merit in the contention of the applicant that paint is being sold separately. In view of this we find it is not a fit case for total waiver of Service Tax - Conditional stay granted.

Summary

The Appellate Tribunal CESTAT NEW DELHI heard an application for waiver of pre-deposit of duty, interest, and penalties amounting to Rs. 3,51,203/- by an applicant undertaking testing and painting of old gas cylinders. The tribunal found that the paint used was a consumable for providing maintenance and repair services, not sold separately. The applicant was directed to deposit Rs. 1,50,000/- within six weeks, with the remaining amount waived upon compliance.