2015 (8) TMI 817 - AT - Service Tax

Manpower Recruitment Agency Service - Held that - Applicant has already collected the amount. In view of that, we direct the applicant to predeposit a further amount of RS. 50,00,000 within a period of eight weeks and report compliance on 7.10.2014. Upon such deposit, predeposit of the balance dues stands waived and recovery thereof stayed during the pendency of the appeals. The prayer for remanding the matter back to the adjudicating authority will be considered after complying with the stay order. - Decided partly in favour of assessee.

Summary

Issues Involved:
Common issue in applications regarding service tax demand under Manpower Recruitment Agency Service.

Analysis:
The judgment addresses the issue of service tax demand on services related to pay-roll preparation and pay-outs to various financial institutions. The adjudicating authority had confirmed significant demands along with interest and penalties. The applicant argued that they had paid the tax in one case and a partial amount in another due to financial hardship, requesting a waiver for the balance. The applicant also claimed eligibility for CENVAT credit, which was not considered initially. The Revenue contended that the applicant had already collected the amount from customers. The tribunal directed the applicant to predeposit a further amount within a specified period and granted a waiver for the balance dues, with recovery stayed during the appeal process. The tribunal also agreed to consider the request for remand after compliance with the stay order. Notably, the Revenue had also filed appeals against the same orders, leading to directions for linking all related appeals.

This judgment underscores the importance of compliance with tax obligations and the procedures for seeking waivers based on financial hardship. It highlights the tribunal's role in balancing the interests of the taxpayer and the Revenue, ensuring due process and fair treatment. The consideration of CENVAT credit eligibility showcases the complexity of tax matters and the need for a thorough review of all relevant aspects before reaching a decision. The directive to link related appeals demonstrates the tribunal's efforts to streamline the adjudication process and ensure consistency in handling similar cases. Overall, the judgment reflects a meticulous approach to resolving disputes in the realm of service tax, emphasizing the need for adherence to legal requirements and procedural fairness.