2014 (3) TMI 776 - AT - Service Tax

Waiver of pre-deposit - Management, maintenance or repair service or supply of man power service - services being provided to Madras Atomic Power Station. - Held that - the works are in relation to maintenance work. Hence prima facie we find that applicant failed to make out a case for waiver of predeposit of entire amount of tax along with interest and penalty. - stay granted partly.

Summary

Issues: Application for waiver of predeposit of tax on management, maintenance or repair service for the period Oct 05 to Nov 10.

The judgment delivered by the Appellate Tribunal CESTAT CHENNAI involved an application for the waiver of predeposit of tax amounting to Rs.46,47,131/- along with interest and penalty, related to management, maintenance, or repair services provided between October 2005 to November 2010. The applicant, a cooperative society registered under the Societies Act and administered by the Special Officer of the Government of Tamil Nadu, contended that they had only supplied manpower to the Madras Atomic Power Station and had not provided any maintenance services. The Commissioner (Appeals) had directed the applicant to predeposit the entire tax amount, which was challenged for non-compliance of a stay order. On the other hand, the Revenue representative argued that the applicant had admitted tax liability for maintenance services before the original authority, supported by the work order from the Madras Atomic Power Station for maintenance works in the Reactor Building Group.

Upon reviewing the submissions from both sides, the Tribunal observed that the work order clearly indicated the nature of the works as maintenance-related. Consequently, the Tribunal found that the applicant had not sufficiently demonstrated a case for the waiver of the entire tax amount along with interest and penalty. However, considering the financial hardship claimed by the cooperative society, the Tribunal directed the applicant to deposit a sum of Rs.10,00,000/- within six weeks. Upon this deposit, the predeposit of the remaining tax amount along with interest and penalty was waived, and the recovery was stayed during the pendency of the appeal. The compliance deadline was set for October 17, 2013, with both parties permitted to mention the matter at the time of compliance for further proceedings. The judgment was dictated and pronounced in open court by the presiding judges.