2014 (2) TMI 295 - AT - Service Tax

Waiver of pre-deposit of service tax - Commercial or Industrial Construction Services - Held that - Since the appellant is contesting the issue on merits as well as on limitation, we consider the amount of Rs. 31.82 Lakhs deposited by the appellant as enough deposit to hear and dispose the appeal. Accordingly, the application for the waiver of pre-deposit of balance amounts involved is allowed and recovery thereof stayed till the disposal of appeal - Stay granted.

Summary

Issues: Stay petition for waiver of pre-deposit of service tax, interest, and penalties under Finance Act, 1994 for Commercial or Industrial Construction Services.

Analysis:
1. Service Tax Liability and Penalties: The lower authorities confirmed the demand of service tax liability, interest, and penalties on the appellant for not discharging the service tax liability during the period from April 2005 to March 2009 for services rendered to specific entities. The appellant contested the issue on merits and limitation, indicating a disagreement with the liability imposed.

2. Deposit Verification: The appellant, represented by a Chartered Accountant, stated that they had already deposited a significant amount against the demand. They provided a certificate issued by the Superintendent of Central Excise & Service Tax, Division-Kadi, dated 12.04.2013, confirming a deposit of Rs. 31.82 Lakhs. Additionally, they mentioned a further payment of Rs. 3.26 Lakhs made on 04.10.2011, not included in the certificate. The departmental representative acknowledged that the total deposited amount was Rs. 32.14 Lakhs.

3. Decision on Waiver: After reviewing the submissions and records, the tribunal noted that the appellant contested the service tax liability issue on merits and limitation. Considering the amount of Rs. 31.82 Lakhs already deposited by the appellant as sufficient for the appeal hearing, the tribunal allowed the application for waiver of pre-deposit of the remaining balance amounts. The recovery of the balance amount was stayed until the appeal's disposal, indicating a temporary relief granted to the appellant pending the final decision on the matter.

This detailed analysis of the judgment highlights the issues involved, the arguments presented, and the tribunal's decision regarding the waiver of pre-deposit of service tax, interest, and penalties for Commercial or Industrial Construction Services.