2014 (8) TMI 668 - AT - Service Tax

Waiver of pre-deposit - Installation of PCO booths - Held that - Applicants are liable to pay Service Tax on the net amount they have received from the booth operator. Therefore, they are not liable to pay Service Tax on the gross amount received from the customers for the services provided by the booth operator - Accordingly, the appellants have made out a case for 100% waiver of pre-deposit of the impugned demands and, therefore, we waive the requirement of pre-deposit of the entire amount of Service Tax, interest and penalty and stay recovery thereof during the pendency of the appeal - Stay granted.

Summary

Issues:
1. Condonation of delay in filing appeal before the Tribunal.
2. Liability of the applicants to discharge duty on the whole amount collected by the booth operator.
3. Waiver of pre-deposit of the impugned demands.

Analysis:
1. The Tribunal addressed the issue of delay in filing the appeal before them, noting that the applicants had challenged the impugned order before the wrong authority, causing the delay. The Bench, after considering the reasons for the delay, decided to condone the delay in filing the application and allowed the application of COD (condonation of delay).

2. The main contention in the case was regarding the liability of the applicants to discharge duty on the entire amount collected by the booth operator from customers. The Revenue argued that the applicants should pay duty on the gross amount collected, while the applicants contended that they should only pay Service Tax on the net amount received from the booth operator. After hearing both sides, the Tribunal held that the applicants are liable to pay Service Tax on the net amount received from the booth operator, not on the gross amount collected from customers for the services provided.

3. Lastly, the Tribunal considered the request for waiver of pre-deposit of the impugned demands. The appellants sought 100% waiver of the pre-deposit. After reviewing the case, the Tribunal found merit in the appellant's argument and decided to waive the requirement of pre-deposit of the entire amount of Service Tax, interest, and penalty. Additionally, the Tribunal stayed the recovery of the said amounts during the pendency of the appeal, providing relief to the applicants.

In conclusion, the Tribunal addressed the issues of delay in filing the appeal, the liability of the applicants to pay duty, and the waiver of pre-deposit of the impugned demands, providing a detailed analysis and ruling in favor of the applicants on all counts.