2014 (11) TMI 792 - AT - Service Tax

Waiver of pre deposit - Commercial and Industrial Complex Service - applicants had not placed any evidence in support of their stand that construction of residential dwelling single units would not come under the purview of construction of residential complex service - Held that - Revenue submits that without prejudice, after granting abatement, the demand of tax would be approximately ₹ 36,00,000/-. The Ld. Advocate submits that they have already paid an amount of ₹ 14,8,595/- which has been appropriated in the adjudication order. The applicant admitted the dues of about ₹ 10,00,000 - applicant directed to make pre-deposit a further amount of ₹ 15,00,000 - Partial stay granted.

Summary

Issues:
1. Tax demand for the period 2005-06 and 2009-10 under 'Construction of Commercial Complex Service.'
2. Classification of construction of residential dwelling single units.
3. Consideration of evidence and submissions by the adjudicating authority.
4. Pre-deposit amount and stay of recovery pending appeal.

Analysis:
1. The judgment addresses a tax demand of &8377; 1,60,47,064/- on the applicants for the period 2005-06 and 2009-10 related to the 'Construction of Commercial Complex Service.' The applicants contested the demand, highlighting discrepancies and requesting a reevaluation based on certain financial transactions.

2. The contention arose regarding the classification of construction of residential dwelling single units under the purview of 'Construction of Residential Complex Service.' The applicants failed to provide substantial evidence to support their claim, leading to a lack of merit in their argument. The value of taxable service was estimated to decrease significantly based on additional information provided by the applicants.

3. The adjudicating authority's handling of evidence and submissions came into question, particularly regarding a letter submitted post personal hearing. The authority was criticized for not considering the letter dated 04.02.2013, as the applicants had not formally requested to file written submissions during the hearing. This procedural issue was a point of contention during the proceedings.

4. In response to the overall circumstances, the judgment directed the applicants to make a pre-deposit of &8377; 15,00,000/- within eight weeks, with the balance amount of dues being waived upon this payment. Recovery of outstanding dues was stayed pending the appeal's disposal. The possibility of remanding the matter for further consideration based on the mentioned letter was raised, allowing both parties to address compliance and appeal disposal timelines.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT CHENNAI covers the key issues, arguments, and directives outlined in the legal proceedings.