2016 (8) TMI 943 - AT - Service Tax

Stay application for waiver of pre-deposit - Reconciliation of the taxable value payroll processing for various financial institutes and banking companies records for the period under dispute destroyed remand matter to adjudicating authority for reconciliation of figures Held that - stay application dispensed with the consent of the Ld. AR.. Matter remanded to original authority for fresh adjudication appeal taken up for hearing.

Summary

Issues: Stay application for waiver of pre-deposit of service tax, remand to original authority for reconciliation of tax liability, compliance with High Court directive.

Analysis:
1. Stay Application for Waiver of Pre-deposit: The appellant filed a stay application seeking waiver of pre-deposit of service tax, interest, and penalty confirmed by the adjudicating authority. The Tribunal directed the appellant to deposit the entire amount of service tax of ?1,09,91,890 and report compliance by a specified date. However, the High Court, in response to a civil miscellaneous appeal, set aside the Tribunal's order, granting the appellant another opportunity for a hearing of the stay application. The High Court directed the Tribunal to inform the appellant's counsel in advance, hear the application on merits, and dispose of it in accordance with the law.

2. Remand for Reconciliation of Tax Liability: The appellant, engaged in payroll processing for financial institutes and banking companies, requested a remand to the original authority for reconciliation of taxable value and determination of tax liability for the period under dispute (2010-2011). The appellant cited the unavailability of records due to destruction during floods in Chennai and assured cooperation in reconciling figures. The Revenue, represented by the Ld. AR, had no objection to the remand, noting that the reconciliation plea was a new ground not raised before the adjudicating authority.

3. Compliance with High Court Directive: Following the dispensation of the stay application, the appeal was taken up for hearing with the consent of the Revenue. Considering the appellant's submission regarding the need for reconciliation of taxable value for the disputed period, the Tribunal remanded the matter to the original authority for a fresh adjudication after due consideration of the appellant's submissions. The Tribunal's decision aimed to address the appellant's plea for reconciliation and compliance with the High Court's directive for a fair and thorough adjudication process.