2015 (10) TMI 784 - AT - Service Tax

Demand of Service Tax Appellant provide services of dredging service, supply of tangible goods service and transport of goods by Road Service and contends that service tax pertaining to the same has already been paid by the Contractor; though the work order could not be produced Held That - Prima facie, appellant was not able to make convincing reasons for complete waive of the confirmed dues. - Partial stay granted.

Summary

Issues: Stay application against Service Tax demand, penalties under Section 77 (1), 77 (2) & 78 of the Finance Act, 1994.

Analysis:
The appellant filed a stay application against the Service Tax demand of Rs. 76,33,475/- confirmed by Order-in-Original No. 76/Commissioner/ST/Kol/2012-13 dated 20/03/2013, along with interest and penalties imposed under Section 77 (1), 77 (2) & 78 of the Finance Act, 1994. The appellant's representatives argued that the majority of the demand pertained to dredging service, citing a letter from the main contractor confirming payment of service tax for a specific contract. However, they failed to provide a copy of the relevant work order. The adjudicating authority had given detailed reasoning for confirming the demand related to dredging service, transportation of goods by road service, and supply of tangible goods service. The issues raised by the appellant were deemed contentious and required further examination during the final hearing. The appellant was directed to pay Rs. 5.00 Lakhs within 8 weeks and report compliance by 30/11/2015 to the CESTAT Registry. A stay on the recovery of the remaining amounts, interest, and penalties was granted pending the disposal of the appeal.