2013 (10) TMI 434 - AT - Service Tax

Service tax liability - Hiring of Ship services - revenue got the bank accounts of the assessee frozen - Held that - Appellant s account has been debited with the entire amount of service tax liability as has been confirmed by the adjudicating authority. On perusal of the record, we find it so. Since the entire amount of service tax liability has been debited by the State Bank of India and the appellant is contesting the issue on merits, we consider the said amount as enough deposit to hear and dispose the appeal. - Stay granted. Lower authorities directed to issue a letter to the Bank to allow the appellant to transact the business from the said bank - Decided partly in favour of assessee.

Summary

Issues:
1. Application for out of turn hearing of application for condonation of delay.
2. Condonation of delay in filing of appeal and stay petition.
3. Service tax liability on Hiring of Ship services.
4. Stay petition for service tax liability.
5. Waiver of pre-deposit of amount of interest and penalties.
6. Freezing of bank account by authorities.

Analysis:
1. The Tribunal allowed the application for out of turn hearing of the condonation of delay application filed by the assessee due to the gravity of the situation where the Revenue authorities had initiated recovery proceedings and frozen the bank account of the appellant for not producing a stay order from the Tribunal.

2. The Tribunal considered the delay of 47 days in filing the appeal and stay petition, where an affidavit was filed stating the reasons for the delay. The individual named Shri Sameer Naik admitted to receiving the order but failed to submit it promptly due to being unaware of its importance. The Tribunal allowed the condonation of delay and directed the registry to take the stay petition and appeal on record.

3. The issue involved service tax liability on Hiring of Ship services during a specific period. The adjudicating authority confirmed the service tax demand, charged interest, and imposed penalties. The appellant contested the liability and sought a stay on recovery.

4. The Tribunal found that the entire amount of service tax liability had been debited by the bank, and since the appellant contested the issue on merits, the amount was considered sufficient for hearing and disposal of the appeal. The application for waiver of pre-deposit of interest and penalties was allowed, and recovery stayed pending appeal disposal.

5. The appellant requested defreezing of the account, which was granted by the Tribunal as the deposited amount was deemed enough for the appeal process. The lower authorities were directed to allow the appellant to transact business from the bank account.

6. The Tribunal's decision aimed to provide relief to the appellant by allowing the out of turn hearing, condoning the delay, granting a stay on recovery, and directing the authorities to defreeze the bank account for business transactions, ensuring a fair process in addressing the service tax liability issue.