2014 (2) TMI 997 - AT - Service Tax

Demand of service tax - Held that - applicant already paid a sum of Rs.74,65,676/-. We find that the deposit of the said amount is sufficient for the purpose of hearing of appeal - Hence, predeposit of the balance amount of tax and penalty are waived and stayed till disposal of the appeal - Stay granted.

Summary

Issues:
1. Application for change of cause title.
2. Hearing of stay application.

Issue 1: Application for change of cause title

The Department filed an application for correction of the cause title of the appeal to substitute "Commissioner of Central Excise, Chennai IV Commissionerate" with "Commissioner of Service Tax, Chennai." The appeal pertained to the jurisdiction of the Service Tax Commissionerate, as highlighted in the Show Cause Notices issued against a specific entity. The application sought to rectify the respondent name in the appeal to align with the correct jurisdiction. After hearing the Additional Commissioner (AR) and reviewing the records, the Tribunal allowed the application. The Registry was directed to make the necessary correction in the cause title, and the assessee was instructed to use the correct title in further proceedings. The application was disposed of in these terms.

Issue 2: Hearing of stay application

Upon considering a stay application, the Tribunal noted a service tax demand, penalty, and interest amounting to Rs.1,19,85,582. The impugned order indicated that the applicant had already paid Rs.74,65,676. After evaluating both sides and the records, the Tribunal found the deposited amount to be sufficient for the appeal hearing. Consequently, the Tribunal waived the predeposit of the remaining tax and penalty amounts, staying them until the appeal's disposal. The stay application was allowed, ensuring the balance amounts were not required to be paid until the appeal's resolution.

This judgment from the Appellate Tribunal CESTAT Chennai addressed two key issues: the correction of the cause title in an appeal to reflect the correct jurisdiction and the granting of a stay application concerning service tax demands and penalties. The Tribunal approved the correction application to align the respondent's name with the appropriate jurisdiction, emphasizing the importance of accurate cause titles in legal proceedings. Additionally, in the stay application hearing, the Tribunal considered the deposited amount sufficient for the appeal process, leading to the waiver of predeposit for the remaining tax and penalty amounts until the appeal's finalization.