2014 (2) TMI 952 - AT - Service Tax

Residential Complex Section 65(91a) whether Construction of Complex Service is chargeable to service tax Held that - Following decision of S KADIRVEL Versus COMMISSIONER OF CENTRAL EXCISE, SERVICE TAX, TIRUCHIRAPALLI 2013 (8) TMI 262 - CESTAT CHENNAI - Conditional stay granted.

Summary

Issues: Application for waiver of predeposit of service tax and penalty under Sections 77 and 78 of the Finance Act, 1994.

Analysis:
1. The applicant sought waiver of predeposit of service tax and penalty amounting to Rs.2,52,28,175/- and equal penalty under Sections 77 and 78 of the Finance Act, 1994. The services provided by the applicant fell under various categories including commercial or industrial construction service, erection, commissioning, installation service, interior decorator service, and construction of residential complex service.

2. The tax demand pertained to the period from 2004-05 to March 2009. The advocate highlighted specific project-wise service tax dues, such as construction for police personnel houses and an indoor stadium for sports activities. Reference was made to a Tribunal's stay order in a similar case to support the claim for unconditional stay on certain amounts. Additionally, arguments were presented regarding non-receipt of service tax amounts for specific services rendered, ongoing litigation, and lack of abatement granted by the adjudicating authority.

3. The authorized representative for the Revenue contended that the adjudicating authority had provided detailed findings on each project in the order. It was emphasized that the extended period of limitation would be applicable in this case. Following the submissions from both sides and a review of the records, the Tribunal acknowledged the stay order covering a portion of the tax amount. The demand for the extended period of limitation was deferred for consideration during the appeal hearing. The Tribunal directed the applicant to deposit Rs.50,00,000/- within six weeks, after which the balance of the tax, penalty, and interest would be waived pending the appeal's disposal. Compliance was scheduled to be reported on a specified date.

This detailed analysis of the judgment addresses the issues involved in the application for waiver of predeposit of service tax and penalty under Sections 77 and 78 of the Finance Act, 1994, outlining the arguments presented by both parties and the Tribunal's decision regarding the deposit and waiver of the tax amount pending appeal.