2014 (4) TMI 769 - AT - Service Tax

Waiver of pre-deposit - Consulting Engineer; Maintenance or Repair Service; Commercial or Industrial Construction Service; Erection, Transport of Goods by Road; Construction of Complex, Works Contract - Receipt of advance taxes - Held that - where Service Tax is chargeable on any taxable service with reference to its value, then such value shall in a case where the provision of the service is for consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him - Section 67 clause (3) further elucidates the principle by stating that the gross amount charged shall include any amount received towards the taxable service, before, during or after provision of such service - Stay denied.

Summary

Issues:
- Waiver of pre-deposit and stay of further proceedings sought by the appellant based on an adjudication order confirming Service Tax, interest, and penalty.
- Interpretation of Section 65 (105) and Section 67 of the Finance Act, 1994 regarding taxable services and valuation for Service Tax.
- Application for waiver of pre-deposit and stay of proceedings rejected by the Tribunal.

Analysis:
The judgment before the Appellate Tribunal CESTAT Bangalore involved the appellant seeking a waiver of pre-deposit and stay of further proceedings following an adjudication order by the Commissioner confirming Service Tax, interest, and penalty. The appellant, engaged in providing various taxable services, received advances for services rendered between 16.6.2005 to 30.06.2009, as per the records. The Tribunal noted the amendments brought about by the Finance Act, 2005 to Section 65 (105) and Section 67, defining taxable services and the valuation for Service Tax. Specifically, the amendments clarified that the gross amount charged by the service provider for services provided or to be provided includes any amount received before, during, or after the provision of the service. The Tribunal found no infirmity in the adjudication order, indicating no grounds for intervention or the grant of waiver of pre-deposit or stay of proceedings.

The Tribunal emphasized the clarity of the relevant provisions and concluded that the order of adjudication did not warrant any intervention prima facie. Consequently, the application for waiver of pre-deposit and stay of further proceedings was rejected. The Tribunal directed the appellant to remit the adjudicated liability to the Revenue within 8 weeks, taking into account any amounts already remitted, and report compliance by a specified date. Failure to comply within the stipulated timeline would result in the appeal being rejected without further reference to the tribunal. The counsel for the appellant was present during the hearing and duly noted the order, serving as sufficient intimation of the obligations imposed by the Tribunal. The application was disposed of accordingly, with the Tribunal upholding the adjudication order and denying the requested waiver of pre-deposit and stay of proceedings.