2014 (3) TMI 541 - AT - Service Tax

Waiver of pre-deposit of service tax - Penalty u/s 76, 77 & 78 - Appellant had rendered taxable services to NTPC, at Bhagalpur, Bihar, but failed to discharge service tax on the said services - Held that - Advocate has fairly accepted that the issue of wrong calculation of demand was not raised before the adjudicating authority and hence could not be considered and verified. The Ld. A.R. for the Revenue has no objection in remanding the case for re-verification of aforesaid facts. However, he has pleaded that the appellant should be put into terms. Accordingly, in the interest of justice, the appellant is directed to deposit an amount of Rs.1.00 Lakh (Rupees One Lakh only) within a period of eight weeks from today and report compliance directly to the adjudicating authority - Matter remanded back with order of pre deposit.

Summary

Issues:
Application for waiver of pre-deposit of service tax and penalties under various sections of the Finance Act, 1994.

Analysis:
The case involved an application for waiver of pre-deposit of service tax and penalties imposed under different sections of the Finance Act, 1994. The appellant had rendered services under Maintenance & Repair Service and Installation and Commissioning service categories, both taxable under specific sections of the Act. They had centralized registration at their Mumbai head office and paid service tax accordingly. However, a demand notice was issued by the Commissioner at Patna alleging non-payment of service tax on services rendered at NTPC, Bhagalpur, Bihar. The appellant argued that the value of taxable services from various locations, including Bhagalpur, were included in the gross receipt and service tax was paid from Mumbai. The appellant presented a Chartered Accountant's certificate supporting their claim. The Revenue objected, stating that certain issues were not raised before lower authorities. The Tribunal decided to dispose of the appeal with the consent of both parties.

The Tribunal found that the demand was confirmed due to alleged non-payment of service tax on services provided to NTPC, Bhagalpur. The appellant contended that service tax was paid from their Mumbai office, and the Chartered Accountant's certificate confirmed payment for services at Bhagalpur. The appellant also mentioned errors in the show cause notice, which were not raised earlier. The Revenue did not object to remanding the case for verification but requested the appellant to comply with terms. Consequently, the Tribunal directed the appellant to deposit a specific amount within eight weeks and report compliance to the adjudicating authority. The authority was instructed to consider all evidence, including the Chartered Accountant's certificate, and determine the liability of service tax in light of payments made from the Mumbai office. The Tribunal emphasized that all issues remained open, ensuring the appellant's right to a hearing. The appeal was allowed for remand, and the Special Petition was disposed of.