2014 (6) TMI 243 - AT - Service Tax

Waiver of service tax - Management Consultancy service - Applicant being a premier Management Institute, provided education to the students in the area of Management - Held that - Prima-facie, at this stage, without entering into the dispute relating to activities rendered by the Applicant whether it would result into taxable service or otherwise under the category of Management Consultancy service, which rests on appreciation of evidence adduced by both sides ; the offer made by the ld.Sr. Advocate to deposit of Rs.42,18,396/-, in addition to the amount of Rs.68.00 lakhs (Rs.33.00 lakhs Rs.35.00 lakhs Rs.68.00 lakhs) already deposited, in our opinion, is sufficient for hearing the appeal. Consequently, we direct the Applicant to deposit the said amount of Rs.42,18,396/- within a period of six weeks from today and report compliance on 10.04.2014. On deposit of the said amount, the remaining adjudged dues would stand waived and its recovery stayed during pendency of the appeal - Conditional stay granted.

Summary

Issues:
1. Early hearing of the COD Application
2. Condonation of delay in filing the appeal
3. Waiver of service tax, penalty, and interest

Analysis:
1. Early Hearing of COD Application:
The Appellate Tribunal received a Miscellaneous Application seeking early hearing of the COD Application. The amount involved was over Rs.1.00 Crore. Both the Appellant's Sr. Advocate and the Department's representative had no objections to the early hearing. The Tribunal allowed the application for early hearing and proceeded with the COD Application.

2. Condonation of Delay in Filing the Appeal:
The Appellant had filed a Writ Petition before the High Court challenging the Adjudicating Authority's order. After withdrawing the Writ Petition, the Appellant filed an appeal before the Tribunal with an application seeking condonation of delay. The delay of around 1874 days was attributed to pursuing remedies before the High Court. The Appellant argued that excluding the period of litigation before the High Court, there was no delay in filing the appeal before the Tribunal. Both sides agreed to condone the delay, and the Tribunal, considering the reasons provided, allowed the Miscellaneous Application.

3. Waiver of Service Tax, Penalty, and Interest:
The Appellant, a Management Institute, sought waiver of service tax amounting to Rs.1.04 Crores, penalty under Section 78, penalties under other provisions of the Finance Act, 1994, and interest. The Appellant contended that their educational activities did not fall under taxable service as defined under the Finance Act. They had already paid a significant amount and were willing to deposit a further sum pending appeal disposal. The Revenue acknowledged the payments made by the Appellant. The Tribunal, without delving into the dispute on taxable services, directed the Appellant to deposit an additional amount within a specified period. Upon compliance, the remaining dues would be waived, and recovery stayed during the appeal's pendency. The Tribunal allowed the Appellant to move an application for early hearing of the appeal after compliance.

In conclusion, the Appellate Tribunal, after addressing the issues of early hearing, condonation of delay, and waiver of dues, disposed of the Miscellaneous Applications and Stay Petition in accordance with the submissions made by both parties.