2014 (11) TMI 788 - AT - Service Tax

Waiver of pre deposit - Manpower Recruitment and Supply Agency Service - Held that - issue is covered by the decision of the Tribunal in the case of Future Focus Infotech Vs. CCE - 2010 (3) TMI 190 - CESTAT, CHENNAI . On the other hand, the learned counsel submits that the issue is covered by the decision of the Tribunal in the case of Cognizant Technology Solutions Ltd. Vs. CCE - 2010 (3) TMI 328 - CESTAT, CHENNAI . We find that the issue will be decided after examining the documents. Hence the applicant failed to make out a strong prima facie for waiver of entire amount of dues - Partial stay granted.

Summary

Issues:
1. Change of cause title from Commissioner of Central Excise to Commissioner of Service Tax.
2. Tax demand on software development and employee supply services.
3. Pre-deposit amount determination and waiver during appeal.

Analysis:
1. The first issue addressed in the judgment pertains to the change of cause title from Commissioner of Central Excise to Commissioner of Service Tax. The Revenue filed an application seeking this change, which was allowed by the Tribunal after considering submissions from both parties. The Registry was directed to amend the respondent's name accordingly, reflecting the change in the cause title. This miscellaneous application was allowed by the Tribunal.

2. Moving on to the second issue, it involves a tax demand on software development and employee supply services provided by the appellant to Infosys. The adjudicating authority had confirmed a tax demand of Rs. 95,68,100 under the category of "Manpower Recruitment and Supply Agency Service." The appellant argued that the issue was covered by a specific decision of the Tribunal in the case of Cognizant Technology Solutions Ltd. Vs. CCE, while the Revenue contended that it was covered by a different decision. The Tribunal decided that the issue required examination of documents and found that the appellant failed to establish a strong prima facie case for the waiver of the entire amount of dues. Consequently, the appellant was directed to pre-deposit Rs. 20,00,000, with a further amount of Rs. 35,753 to be deposited within a specified timeline. Upon compliance with these pre-deposit requirements, the pre-deposit of the balance dues was waived, and the recovery thereof stayed during the pendency of the appeal.

3. Lastly, the judgment addresses the determination of the pre-deposit amount and its waiver during the appeal process. The Tribunal considered the submissions made by the appellant regarding the amount already paid and directed the appellant to make further deposits to meet the pre-deposit requirements. Upon compliance and deposit of the specified amounts, the Tribunal granted a waiver of the pre-deposit for the balance dues and stayed the recovery process during the appeal period. This decision aimed to balance the interests of both parties while ensuring compliance with legal procedures and requirements.