2009 (5) TMI 101 - AT - Service Tax

Adjudicating Authority has found out a deliberate change of the evidence to convert a repair and maintenance contract into supply contract. - appellant has made deposit of Rs. 85,54,765/- when the investigation was made by DGCRI. Such circumstances compels us to ask for pre-deposit of the appellant s own admitted figure of Rs. 9,00,000/- - We therefore direct that there shall be waiver of deposit of interest and penalty

Summary

The Appellate Tribunal CESTAT, DELHI, consisting of Members D.N. Panda and Rakesh Kumar, heard the appeal of an appellant represented by Shri Abhishek Agrawal, C.A., against a demand of Rs. 9,00,000 for recovery. The appellant argued that a substantial deposit had been made during the adjudication process, and requested that the remaining balance demand of tax and penalty be waived during the appeal. On the other hand, the Joint CDR contended that the category of service provided by the appellant required a pre-deposit of the entire service tax and penalty during the appeal. The Tribunal, after hearing both sides and examining the records, noted a deliberate change of evidence by the appellant in converting a repair and maintenance contract into a supply contract. The appellant had made a deposit of Rs. 85,54,765 during the investigation. The Tribunal directed the appellant to deposit the balance demand of service tax within four weeks and comply by 18th June 2009. It was also decided that interest and penalty would be waived during the appeal process, with realisation of these amounts stayed until the appeal was disposed of. The penalty aspect was to be thoroughly examined based on the gravity of the case. The order was dictated and pronounced in open court by Member D.N. Panda.