2015 (4) TMI 428 - AT - Service Tax

Waiver of pre deposit - Construction of complex - Commercial or industrial Construction Service - Imposition of penalties and interest - services provided to public authorities - held that - No co-operation of the appellant, the authority was in dark to consider the submission of the appellant. He passed exparte order basing on the materials available on record. The manner appellant has acted before law, throws light that it had defiant attitude toward law which is patent from the adjudication order - Keeping in view the prima facie case suggesting balance of convenience tilting in favour of Revenue and appreciating no undue hardship may be caused by this order to the appellant, as an interim modality, we direct the applicant to deposit ₹ 4,00,00,000 within 4 weeks from receipt of the order - Partial stay granted.

Summary

Issues:
1. Adjournment request due to counsel's absence.
2. Service tax demand with penalty and interest.
3. Interpretation of service tax liability for various services provided.
4. Application of extended period of limitation.
5. Sustainability of interest demand.
6. Imposition of penalties under relevant provisions.
7. Lack of cooperation from the appellant affecting the adjudication process.
8. Pre-deposit requirement and interim relief.

Issue 1:
The judgment addresses the issue of adjournment requested by the appellant's counsel due to his absence, citing a visit to Sabarimala. The tribunal noted the dilatory tactics employed by the appellant, causing prejudice to the interest of justice. Despite a previous adjournment, the appellant failed to move the application, leading the tribunal to proceed with the hearing in the absence of the appellant.

Issue 2:
The judgment highlights a substantial service tax demand of Rs. 7.71 crores along with an equivalent penalty and interest. The tribunal heard the Revenue's arguments regarding the demand, indicating the significant financial implications involved in the case.

Issue 3:
The judgment delves into the interpretation of service tax liability concerning services rendered to various entities. The adjudicating authority framed specific issues related to the construction of residential complexes, management, maintenance, repair services, works contract services, and commercial or industrial construction services. The tribunal reviewed the authority's analysis of evidence and relevant laws to determine the liability of the appellant under different taxable entries.

Issue 4:
The judgment discusses the application of the extended period of limitation in demanding service tax under various categories. The tribunal considered the authority's examination of the core issues leading to the liability of the appellant, citing the Supreme Court's precedent to support the decision not to waive predeposit.

Issue 5:
Regarding the demand for interest under the Finance Act, 1994, the tribunal assessed the sustainability of such demand. The authority's thorough examination of the issues and evidence led to the conclusion that there was no ground for waiving the predeposit in this case.

Issue 6:
The judgment addresses the imposition of penalties under the relevant provisions of the Finance Act, 1994. The authority's detailed analysis of the appellant's stand and the applicable laws resulted in the decision not to grant a waiver of predeposit based on the Apex Court's precedent.

Issue 7:
The judgment highlights the lack of cooperation from the appellant, which hindered the adjudication process. The authority had to pass an ex-parte order due to the appellant's non-cooperation, indicating a defiant attitude toward the law.

Issue 8:
In considering the pre-deposit requirement and interim relief, the tribunal directed the appellant to deposit a specified amount within a set timeline. Compliance with this direction would lead to a waiver of predeposit for the balance demand in question and a stay of recovery during the appeal's pendency, ensuring no undue hardship to the appellant.