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2014 (12) TMI 1044 - AT - Service TaxWaiver of pre-deposit of Service Tax - manpower recruitment and supply agency services - appellant submitted that all labourers who were retrenched from the Public Sector Undertaknig-M/s.Hindusthan Copper Ltd. has formed the society, and supplies the labourers on daily wage basis to M/s.Hindusthan Copper Ltd. only.- Held that - Prima facie we find that the Applicant had rendered services under the category of manpower recruitment or supply agency services. However, keeping in view the financial hardship expressed and taking into account that the Applicant is a society formed for the welfare of the labourers it would be prudent at this stage to direct deposit of the amount offered by them. Consequently, the Applicant is directed to deposit the amount of ₹ 2.00 Lakhs within a period of eight weeks - Partial stay granted.
Issues: Application for waiver of pre-deposit of Service Tax and penalty under Finance Act, 1994.
Analysis: 1. The appellant, a registered society formed for the welfare of laborers, sought waiver of pre-deposit of Service Tax and penalty amounting to Rs. 20.10 Lakhs and Rs. 21.05 Lakhs, respectively, imposed under the Finance Act, 1994. 2. The appellant argued that the services provided by them, supplying laborers on a daily wage basis to a specific entity, did not strictly fall under the category of manpower recruitment and supply agency services. They emphasized the absence of an employer-employee relationship and the non-profit motive behind the society's formation. The appellant expressed financial hardship and offered to deposit Rs. 2.00 Lakhs as a gesture of compliance. 3. The Revenue, represented by the Ld.A.R., supported the findings of the Ld. Commissioner(Appeals) regarding the nature of services rendered by the appellant. 4. The Tribunal acknowledged that the appellant's services could be categorized as manpower recruitment or supply agency services. However, considering the appellant's financial constraints and its welfare-oriented purpose, the Tribunal directed the deposit of Rs. 2.00 Lakhs within eight weeks. Upon compliance, the balance dues would be waived, and recovery stayed during the appeal process. Failure to deposit the specified amount would lead to the dismissal of the appeal without further notice.
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