2016 (1) TMI 1017 - AT - Service Tax

Outdoor caring services - appellant provided coffee vending machine in corporate sector to provide coffee to the employees thereof - Held that - This prima facie brings the appellant to the character of caterer. - Prima facie, keeping in view, the abatement pleaded is in question and also the plea that VAT has been paid, which is altogether levied under a different statute not touching the service, as well as the revenue s interest, we direct the appellant to deposit ₹ 15,00,000/- (Rupees fifteen lakhs only) within eight weeks from today and make compliance on 22.1.2016. - stay granted partly.

Summary

Issues: Delay in seeking appeal remedy, character of the appellant as a caterer, financial hardship of the appellant, abatement and VAT payment, compliance with predeposit guidelines, application of statutory provisions, consideration of Supreme Court judgments.

In this judgment by the Appellate Tribunal CESTAT CHENNAI, the issue of delay in seeking appeal remedy was addressed. The Tribunal condoned the delay considering the difficulties expressed by the appellant's counsel. The character of the appellant as a caterer was examined in relation to providing coffee vending machines in the corporate sector, leading to the levy of service tax. The Tribunal noted the Revenue's grievance regarding the appropriate levy made in this category. The appellant's financial hardship was also considered, along with the argument that goods used for providing services should not be taxed under the Finance Act, 1994.

Furthermore, the Tribunal discussed the compliance with predeposit guidelines, directing the appellant to deposit a specific amount within a specified timeframe. The appellant's contention regarding the statutory guideline of depositing 7.5% of the tax demand or penalty to enter into appeal hearing was acknowledged. The Tribunal highlighted the inconsistent application of amended provisions and earlier statutory provisions, noting the High Court's previous order in a related case involving the appellant. The Tribunal considered the judgments of the Hon'ble Supreme Court in the cases of Benera Valves Ltd. Vs. CCE and Indu Nissan Oxo Chemicals Industries Ltd. Vs. Union of India while passing the order for predeposit.

Overall, the judgment delves into various issues such as delay condonation, character assessment of the appellant, financial aspects, compliance with guidelines, statutory provisions application, and the consideration of relevant legal precedents to reach a decision in this case.