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2013 (8) TMI 88 - AT - Service TaxStay Application Waiver of pre-deposit - Claim of 67% rebate on Erection, Commissioning and Installation Services. - Benefit of Notification No. 1/2006-ST by reducing 67% of the total value he has received for the services rendered, explaining as insulating material such as Aluminium sheet, thermocole, PU Blocks, Aluminium sheets supplied by them as sale of goods, for which the VAT is paid by them Held that - From the record no invoices have been brought in or shown to us so as to indicate that sales tax liability is discharged - keeping in mind the appellant s claim to rework out the demand considering the cum-tax value, directed appellant to deposit an amount of Rs. 5,00,000/- (Rupees five lakhs only) within a period of eight weeks.
Issues:
1. Request for waiver of pre-deposit of service tax liability, interest, and penalties under the Finance Act, 1994. 2. Interpretation of Notification No. 1/2006-ST regarding service tax liability on Erection, Commissioning, and Installation Services. 3. Consideration of sales tax liability discharge for insulating material supplied. 4. Comparison with a previous case involving conditional stay. Analysis: The judgment by Appellate Tribunal CESTAT Ahmedabad addressed the issue of a stay petition seeking the waiver of pre-deposit amounting to Rs. 39,62,783, confirmed as service tax liability, interest, and penalties under the Finance Act, 1994. The Tribunal, comprising Mr. M.V. Ravindran and Mr. H.K. Thakur, JJ., considered the appellant's claim related to the discharge of service tax liability on services provided under Erection, Commissioning, and Installation Services. The appellant had utilized Notification No. 1/2006-ST to reduce 67% of the total value received for the services, attributing certain materials as insulating goods subject to VAT. However, the absence of invoices demonstrating the discharge of sales tax liability raised concerns. The Tribunal referred to a previous case involving Rudra Engineering, where a conditional stay was granted, indicating a consistent approach at the stay stage. Furthermore, the Tribunal found no reason to deviate from the previous decision and directed the appellant to deposit Rs. 5,00,000 within eight weeks for reevaluation of the demand based on the cum-tax value. Compliance was to be reported before the Deputy Registrar for further review by the Bench. Upon satisfactory compliance, applications for the waiver of pre-deposit for the remaining amounts were approved, and recovery was stayed pending the appeal's disposal. The judgment emphasized the importance of regulatory compliance and the need for proper documentation to support tax liabilities. The decision showcased a balanced approach, considering the appellant's request while ensuring procedural adherence and financial accountability in tax matters. In conclusion, the judgment provided a structured framework for addressing the waiver of pre-deposit requests in tax liability cases, emphasizing the significance of supporting documentation and compliance with relevant tax regulations. The Tribunal's decision highlighted the importance of consistency in judicial rulings and the careful consideration of factual circumstances in determining the appropriate course of action.
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