2013 (9) TMI 34 - AT - Service Tax

Pre-deposit demand on the ground of non-production of invoices/documents - assessee claims that now in possession of all the necessary documents/invoices for the relevant period by which they could establish that the confirmed service tax is not payable, as the receipt of the services charges pertain to the period when such services were not taxable. - Held that - Applicant produced all these documents to rebut the allegation in the demand notice and not considered by the adjudicating authority, but these documents were not in their possession at the material time Considering all the circumstances in mind including financial hardship of the Applicant and in the interest of Revenue, offer made by the Ld. C.A. for the Applicant, to deposit Rs.15.00(Fifteen Lakhs) is accepted and directed to make pre-deposit of the said amount stay granted partly.

Summary

Issues: Application for waiver of pre-deposit of Service Tax and penalty under Rule 78 of the Finance Act, 1994.

Analysis:
- The application sought waiver of pre-deposit of Service Tax amounting to Rs.1,01,12,083/- and an equal amount of penalty imposed under Rule 78 of the Finance Act, 1994.
- The demand was confirmed due to non-production of invoices/documents before the Ld. Commissioner.
- The applicant's Chartered Accountant submitted that they now possess all necessary documents/invoices to establish that the confirmed service tax is not payable, as the services charges pertain to a non-taxable period.
- The Chartered Accountant offered to make a pre-deposit of Rs.15.00 lakhs.
- The Revenue argued that all invoices/documents were not produced before the Commissioner, leading to the confirmation of the demand.
- The Tribunal noted that the applicant could not produce all evidence initially but claimed to possess them now.
- The documents were presented for the first time before the Tribunal and were not verified for relevance and genuineness by the adjudicating authority.
- While the Tribunal did not find a prima facie case for total waiver of pre-deposit, considering financial hardship and the interest of Revenue, it directed the applicant to deposit Rs.15.00 lakhs within twelve weeks.
- On compliance, the balance amount of dues adjudged would be waived, and recovery stayed during the appeal's pendency.
- Failure to deposit the amount would lead to the dismissal of the appeal without further notice.