2007 (4) TMI 252 - AT - Service Tax

Security Agency Services - Appellant submits that the demand has been confirmed by taking the entire realization into account and without deducting the Service Tax - Disputed issue, prima facie, is decided by the precedent decisions of the Tribunal in favour of the revenue. However, we agree with the appellant as regards the value of the taxable services is concerned stay granted partly

Summary

Issues:
Prayer to dispense with pre-deposit of Service Tax and penalty amount confirmed against the appellants for security agent services.

Analysis:
The appellant sought to dispense with the condition of pre-deposit of Service Tax and penalties amounting to Rs. 2,41,86,974/- along with personal penalties under Sections 76 and 77 of the Finance Act, 1994. The appellant had already deposited Rs. 53,94,436/- and relied on a stay order in a similar case. The appellant argued that the demand was confirmed without deducting the Service Tax, citing relevant Tribunal decisions. The respondent countered, stating that the Tribunal had decided in favor of the revenue in the case cited by the appellant and referred to other decisions holding Security Agency Services liable to Service tax.

The Tribunal acknowledged that the disputed issue seemed to be decided in favor of the revenue based on precedent decisions. However, the Tribunal agreed with the appellant regarding the value of taxable services. Considering the circumstances, including the amount already deposited by the appellants, the Tribunal directed them to deposit a further Rs. 75 lakhs within twelve weeks. Upon compliance, the balance of the duty and the entire penalty amount would be dispensed with, and recovery stayed during the appeal's pendency.

The matter was scheduled for compliance verification on 10-7-2007, with the revenue permitted to request an early appeal hearing post-compliance.