2014 (1) TMI 1377 - AT - Service Tax

Waiver of pre-deposit of service tax - Management, Maintenance and Repair services - Benefit of small scale service provider notification - Held that - appellant himself took the service tax registration under the said category Management, Maintenance and Repairs Services and started depositing service tax from that date. It was for him to come forward and pay the service tax till 31.03.2008, which he has not done so. In our view, service tax liability arises on the appellant - service tax liability needs to be reworked out, based upon the amount received and the benefit of small scale service provider notification and also the value is to be considered as cum-tax value - appellant has not made out prima facie case for the complete waiver of the amounts involved - Conditional stay granted.

Summary

Issues:
Waiver of pre-deposit of service tax, interest, and penalty under Finance Act, 1994 for the period 2006-07 and 2007-08 on Management, Maintenance, and Repair services rendered.

Analysis:
The Appellate Tribunal CESTAT Ahmedabad heard a stay petition seeking the waiver of pre-deposit of service tax, interest, and penalty amounting to Rs. 3,59,885/- under various sections of the Finance Act, 1994. The appellant had taken service tax registration under the category of Management, Maintenance, and Repair services on 01.04.2008 and started depositing service tax from that date. However, the appellant failed to pay the service tax due until 31.03.2008. The Tribunal held that the service tax liability indeed arose on the appellant for the mentioned period. The Tribunal agreed with the Chartered Accountant's contention that the service tax liability needed to be recalculated based on the amount received, the benefit of small scale service provider notification, and considering the value as cum-tax value. The issue of limitation raised was deemed to be a mixed question of law and facts to be considered at the final disposal of the appeal.

The Tribunal, after considering the facts, concluded that the appellant had not established a prima facie case for the complete waiver of the amounts involved. Consequently, the Tribunal directed the appellant to deposit Rs. 1,50,000/- within twelve weeks and report compliance by a specified date. Upon compliance verification, the application for waiver of pre-deposit of the remaining balance was allowed, and the recovery thereof was stayed until the appeal's final disposal. The judgment was dictated and pronounced in the Court by Mr. M.V. Ravindran.