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2015 (3) TMI 596 - AT - Service TaxWaiver of pre deposit - Commissioning, Installation and Erection Services - Held that - For consideration of the stay application, the ld. counsel for the appellants submits that the service tax has been demanded on the entire amount of services provided by the appellant, in fact the cost of the material supplied is required to be deducted. If the same is taken into consideration, the demand of service tax shall come down drastically. He further submits that all the services provided by the appellants in relation to railways were w.e.f . 01.06.2007. The services provided to Railways are exempted from levy of service tax. If the rate of service tax is considered as 12.36%, the demand against M/s. Saulja Radio Stores shall come down to ₹ 5.62 lakh and in the case of M/s. Nisha Engineering Works it will come down to ₹ 3.14 lakhs. - Partial stay granted.
Issues:
1. Application for waiver of pre-deposit of service tax demand in the category of "Commissioning, Installation and Erection Services." Analysis: The judgment by the Appellate Tribunal CESTAT NEW DELHI involved a case where the appellants sought a waiver of pre-deposit of service tax demand in the category of "Commissioning, Installation and Erection Services." The appellants provided various services related to railways, and the demand for service tax was contested based on the deduction of the cost of materials supplied. The appellants argued that the demand would significantly reduce if the cost of materials was considered. They also claimed that the services provided to Railways were exempted from the levy of service tax. The appellants calculated that with a service tax rate of 12.36%, the demand for one appellant would reduce to Rs. 5.62 lakhs and for the other to Rs. 3.14 lakhs. The tribunal, without delving into other contentions raised by the appellants, directed both appellants to make pre-deposits of the calculated service tax amounts within eight weeks. The specific amounts were set at Rs. 5.62 lakhs for one appellant and Rs. 3.14 lakhs for the other. Compliance was to be reported by a specified date, and on such compliance, the recovery of the remaining adjudicated liabilities was stayed during the pendency of the appeal. However, in case of default in making the pre-deposit, the appeal would stand dismissed for failure to comply with the tribunal's order.
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