2013 (6) TMI 649 - AT - Service Tax

Application for out of trun hearing - appellant has deposited the entire amount of service tax liability, interest thereof and part of the amount of penalty imposed under Section 78 - Held that - Since we have already granted stay for the waiver of pre-deposit of balance amounts, we call for the early hearing application filed by the assessee and take up for disposal. We find that the total amount involved in this appeal along with interest and penalty is approximately Rs.6.40 Crores. Since the amount in this case is substantial, we allow the application for out of turn hearing of appeals and direct the registry to list the appeals for disposal on 10.7.2013.

Summary

Issues: Classification of services rendered by the appellant, waiver of pre-deposit of penalty, out of turn hearing of the appeal.

Classification of Services:
The judgment revolves around the classification of services provided by the appellant concerning the hiring out of rigs for oil exploration. Both the appellant and the Additional Commissioner have acknowledged the payment of service tax liability, interest, and a portion of the penalty under protest. The Tribunal notes the arguable nature of the classification issue and deems the deposited amount sufficient to proceed with the appeal's hearing and disposal. This decision is based on the appellant's contestation of the issue on merits, limitation, and service classification as determined by the adjudicating authority.

Waiver of Pre-Deposit of Penalty:
The adjudicating authority had imposed a penalty on the Finance Manager of the appellant's company. As the issue is under contestation, the Tribunal allows the application for the waiver of pre-deposit of the penalty amount imposed on the Finance Manager. Additionally, applications for the waiver of pre-deposit of balance amounts are granted, and recovery is stayed until the appeals are disposed of, ensuring a fair process for the appellant.

Out of Turn Hearing of the Appeal:
The appellant had filed an application for out of turn hearing of the appeal, which was submitted along with the appeal itself. Despite not being listed due to pending stay petitions, the Tribunal, having already granted a stay for the waiver of balance amounts, decides to consider the early hearing application. Given the substantial amount involved in the appeal, approximately Rs.6.40 Crores, the Tribunal allows the application for out of turn hearing and directs the registry to schedule the appeals for disposal promptly on a specified date, ensuring expeditious resolution of the case.

This judgment by the Appellate Tribunal CESTAT Ahmedabad addresses the classification of services, the waiver of pre-deposit of penalties, and the out of turn hearing of the appeal, providing a detailed analysis of each issue to ensure a fair and efficient legal process for the appellant.