2014 (10) TMI 413 - AT - Service Tax

Cable operator service - value of the taxable service provided by the petitioner - Held that - Prima facie, the petitioner s uncooperative and obstructionist conduct before the assessing authority disentitles the petitioner to any equitable consideration at the present, interlocutory stage. Further, what exactly is the gross consideration received by the petitioner for having provided the taxable Cable Operator service, could only be determined by a critical evaluation of the documentary evidence. In the totality of circumstances, we are therefore inclined to grant waiver of pre-deposit and stay of proceedings for recovery of the assessed liability, on condition that the petitioner remits the entirety of the tax assessed liability plus the interest thereon (however, excluding the component of penalties under Sections 77 and 78), within six weeks from today and report compliance by 14-10-2013. In default of either the deposit or reporting compliance as stipulated, there shall occur a failure of pre-deposit and the appeal would consequently stand rejected for failure of pre-deposit - Partial stay granted.

Summary

Issues: Failure to respond to notices for assessment of Service Tax liability, determination of tax liability, appeal against the adjudication order, accuracy of assessment of taxable service, waiver of pre-deposit, stay of proceedings, compliance with conditions.

In this case, the petitioner-appellant failed to respond to notices and furnish relevant material for the assessment of Service Tax liability. An adjudication order was passed determining tax liability, interest, and penalties. The appellant's appeal was rejected by the Commissioner (Appeals), leading to a further appeal before the Appellate Tribunal. The appellant argued that the quantum of liability was incorrectly determined based on information from Income Tax authorities and TV channels. The Tribunal noted that the accurate assessment of the taxable service could only be determined at the final hearing. Due to the appellant's uncooperative conduct, the Tribunal inclined to grant waiver of pre-deposit and stay of proceedings on the condition that the tax assessed liability plus interest be remitted within six weeks. Failure to comply would result in the appeal being rejected for failure of pre-deposit.

The Tribunal emphasized the importance of compliance with the conditions set forth, and the counsel for the appellant undertook to communicate the obligations to the appellant. The judgment highlights the significance of providing necessary documentation and cooperating with the assessing authority in tax assessment matters. It also underscores the consequences of non-compliance with procedural requirements in appeals before the Tribunal.