2010 (10) TMI 512 - AT - Service Tax

Waiver of pre-deposit - SSI Exemption - authorized service stations - The appellant claim under Notification No. 6/05-S.T., dated 1st March 2005 - The appellants had not filed any reply to the show cause notice - Even in the written submissions filed in the matter, there was no specific claim in the manner required to be made about the applicability of Notification No. 6/2005, to the appellants case - No specific claim in this regard was made either before the original authority or before the Commissioner (Appeals) - It is not permissible for the appellants to raise this ground for the first time in the appeal before the Tribunal and that too without laying any factual foundation to justify the claim - No other ground is pointed out for the grant of stay of the impugned order, question of total waiver of the amount demanded under the impugned order does not arise - The appellants shall deposit the amount of service tax demanded under the impugned order along with interest thereon, while the penalty amount imposed under the impugned order is waived till the disposal of the appeal.

Summary

Issues:
1. Confirmation of service tax demand under business auxiliary services and authorized service stations.
2. Imposition of penalties under Sections 77, 78, and 76 of the Finance Act.
3. Applicability of Notification No. 6/05-S.T. for the appellant's case.

Analysis:

1. The Appellate Tribunal, CESTAT, Bangalore, heard an appeal arising from an order passed by the Commissioner (Appeals), Mangalore. The appellant's appeal was partly allowed concerning the demand of service tax under business auxiliary services, while the demand under authorized service stations was confirmed. Penalties under Sections 77 & 78 were upheld, but the penalty under Section 76 was set aside.

2. The adjudicating authority had earlier confirmed demands under business auxiliary services and authorized service stations, along with interest and penalties. However, the impugned order set aside the declaration regarding business auxiliary services, reducing the liability to a specific amount along with interest and penalty.

3. The appellant sought a stay based on a claim under Notification No. 6/05-S.T., dated 1st March 2005. The Tribunal noted that the appellant had not provided a specific claim regarding the notification's applicability in their case earlier. The Tribunal found the appellant's argument regarding brand name or trade name usage insufficient, as it was raised for the first time without factual foundation or merit. The Tribunal emphasized that raising new grounds without proper justification is impermissible at the appeal stage.

4. Since no other grounds were presented for granting a stay, the Tribunal did not consider total waiver of the demanded amount. The decision required the appellant to deposit the service tax amount demanded along with interest, while waiving the penalty until the appeal's disposal. The application was disposed of with a compliance report due on a specified date.

This comprehensive analysis of the judgment highlights the issues involved, the Tribunal's decision on each issue, and the reasoning behind the Tribunal's conclusions, ensuring a detailed understanding of the legal aspects discussed in the case.