2015 (11) TMI 723 - AT - Service Tax

Waiver of pre deposit - Demand of service tax - Franchise service - Held that - on 30.03.2015 the appellant remitted the entire amount of service tax demand proposed in Show Cause Notice i.e. Rs. 2, 38, 26, 834/- and in a covering letter dated 28.04.2015 also informed the respondent about such deposit made in relation to the adjudication order dated 17.12.2013. In the circumstances we consider that the amount already deposited is sufficient pre-deposit for hearing the appeal. The balance demand is waived and we grant stay of proceedings for recovery during the pendency of the appeal. - Stay granted.

Summary

Issues:
1. Alleged non-remittance of service tax for providing Franchise Service during 2011-12.
2. Service tax demand confirmation in the impugned adjudication order.
3. Pre-deposit and stay pending disposal of the appeal for an earlier period.
4. Remittance of the entire service tax demand proposed in Show Cause Notice.
5. Sufficiency of the amount already deposited as pre-deposit for hearing the appeal.
6. Waiver of the balance demand and grant of stay of proceedings for recovery during the appeal's pendency.

Analysis:
1. The proceedings were initiated against the appellant based on a Show Cause Notice alleging non-remittance of service tax for providing Franchise Service during 2011-12. The impugned adjudication order dated 17.12.2013 confirmed a service tax demand of &8377; 2,38,92,107/- along with interest and penalties.

2. In a separate case for an earlier period, the appellant had preferred an appeal against a service tax demand of &8377; 46,40,606/- for providing Franchise Service. The appellant sought waiver of pre-deposit and stay pending disposal of the appeal. The appellant was directed to pre-deposit &8377; 15 lakhs within a specified timeframe, which was complied with.

3. The appellant remitted the entire amount of service tax demand proposed in the Show Cause Notice on 30.03.2015 and informed the respondent about the deposit in a covering letter dated 28.04.2015 concerning the adjudication order dated 17.12.2013. The Tribunal found the deposited amount to be sufficient as a pre-deposit for hearing the appeal, thereby waiving the balance demand. A stay of proceedings for recovery during the appeal's pendency was granted.

This judgment addresses the issues of service tax non-remittance, confirmation of service tax demand, pre-deposit and stay for appeal, sufficiency of deposited amount, waiver of balance demand, and stay of recovery proceedings. The Tribunal considered the appellant's actions, compliance with pre-deposit requirements, and decided in favor of the appellant by waiving the balance demand and granting a stay on recovery proceedings during the appeal process.