2010 (4) TMI 593 - AT - Service Tax

Waiver of pre-deposit - Service Tax liability on the appellant as a GTA - recipient of this bundle is a small proprietorship firm and hence, they will be covered under Notification No. 35/2004-S.T., dated 3-12-2004 - Held that - benefit of Notification 35/2004 can be given to the appellant only on production of evidence - appellant had not made a prima facie case for complete waiver of the amounts - condition of pre-deposit of the balance amounts involved is waived and recovery thereof stayed, till the disposal of the appeal

Summary

Issues involved:
Service Tax liability on the appellant as a GTA under Notification No. 35/2004-S.T., dated 3-12-2004.

Analysis:
The appellant filed a stay petition seeking a waiver of pre-deposit of various amounts, including Service Tax, interest, and penalties. The issue revolved around the Service Tax liability on the appellant as a Goods Transport Agency (GTA). The appellant claimed that they were covered under Notification No. 35/2004-S.T., dated 3-12-2004, as they transported cloth bundles from textile mills to a small proprietorship firm. However, during the hearing, the appellant could not provide evidence to show that the consignors were eligible under the said notification. The Tribunal noted that the benefit of the notification could only be granted upon the production of such evidence. As the appellant failed to establish a prima facie case for a complete waiver of the amounts determined by the Adjudicating Authority, the Tribunal directed the appellant to deposit a specific amount within a stipulated period. The Tribunal considered the appellant's status as a small operator and ordered the deposit of Rs. 1,50,000 within eight weeks. Upon compliance, the pre-deposit condition for the remaining amounts was waived, and the recovery was stayed until the appeal's disposal.

This judgment highlights the importance of providing evidence to support claims related to tax liabilities and notifications. The Tribunal emphasized the need for the appellant to substantiate their eligibility for the benefit under the relevant notification. Additionally, the Tribunal considered the appellant's operational size in determining the deposit amount and granting the waiver condition. The decision underscores the significance of meeting evidentiary requirements in tax-related cases to establish a strong legal position and secure favorable outcomes.