2008 (4) TMI 139 - AT - Service Tax

Site formation and clearance, excavation and earthmoving and demolition services - non-filing of the prescribed ST-3 returns - appellant has not pleaded any financial hardship - They have not produced balance sheet - In the appellant s another case, this Bench had directed the appellant to pre-deposit 20% of the service tax amount - following ratio of the same, partial stay is granted

Summary

Issues:
1. Pre-deposit requirement for Service Tax and Education Cess.
2. Penalty imposition for non-payment of Service tax and non-filing of ST-3 returns.
3. Applicability of waiver for pre-deposit.
4. Financial hardship plea and balance sheet submission.
5. Direction for pre-deposit and stay on recovery.

Analysis:
1. The appellant, a Civil Contractor, was required to pre-deposit a significant amount towards Service Tax and Education Cess for the period in question related to specific services provided. The penalty included a daily fine for non-payment and a separate penalty for failure to file prescribed returns, highlighting the seriousness of the non-compliance issue.

2. The Department initiated proceedings against the appellant for non-registration for Service tax despite providing taxable services under a lucrative contract. The appellant's failure to take necessary registration led to quantification of demands and subsequent confirmation by the Department, resulting in the imposition of penalties as per the law.

3. The appellant sought a waiver for pre-deposit based on a previous case where they were directed to pre-deposit a percentage of the service tax amount. However, the Revenue opposed the waiver, asserting a strong case on merits and the absence of grounds for granting such relief, especially in the absence of any financial hardship plea.

4. The Tribunal considered the lack of financial hardship plea and the absence of a balance sheet submission by the appellant. Referring to a previous case, the Tribunal directed the appellant to pre-deposit a specific amount within a specified timeframe, with the waiver of the balance amount contingent on this deposit, and recovery stayed until the appeal's disposal.

5. The Tribunal's order mandated compliance with the pre-deposit directive within a set period, failing which the appeal would be dismissed. Upon compliance, the appeal was scheduled for a final hearing alongside another related appeal, emphasizing the need for timely adherence to the Tribunal's directives to avoid adverse consequences and ensure procedural progression.