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2013 (10) TMI 736 - AT - Service TaxInterest u/s 75 - whether the liability to remit tax on the enhanced rate of 4.12% enures in respect of the services rendered after 01-03-2008 or is also leviable at the higher rate where the consideration for services rendered prior to 01-03-2008 is paid to the provider after 01-03-2008 - Held that - it appropriate to grant waiver pre-deposit and stay all further proceedings pursuant to the adjudication order, on condition that the appellant remits 50% of the service tax assessed and the corresponding interest thereon (excluding however the component penalty imposed under Section 76 of the Act) within 4 weeks from today and report compliance by 12-09-2013. - stay granted partly.
Issues:
1. Liability to remit tax on enhanced rate of 4.12% for services rendered before and after 01-03-2008. The judgment concerns the confirmation of Service Tax of Rs.2,24,430/- plus cess of Rs.6,733/- along with interest of Rs.7,286/- under Section 75 and penalties under Section 76 by the adjudication order dated 22-02-2012 passed by the Dy. C..S.T., Delhi-II. The Order-in-Appeal dated 05-10-2012 upheld this decision. The main issue raised by the petitioner/appellant is whether the liability to pay tax at the enhanced rate of 4.12% applies to services rendered after 01-03-2008 or if it also applies when payment for services rendered before this date is made after 01-03-2008. The ambiguity in the Show Cause Notice, the petitioner's response, the adjudication, and the appellate order necessitates a detailed analysis during the final hearing of the appeal to determine if the higher tax rate was assessed for services provided before or after 01-03-2008. Given the circumstances, the tribunal decides to grant a waiver pre-deposit and stay all further proceedings following the adjudication order. The appellant is required to remit 50% of the service tax assessed, along with corresponding interest (excluding the penalty under Section 76), within four weeks from the date of the order and report compliance by 12-09-2013. Failure to comply with the deposit or reporting requirements within the specified time will result in the rescission of the waiver and dismissal of the appeal for non-payment. The Legal Consultant for the petitioner is present in court and has acknowledged the contents of the order, providing sufficient information to the appellant regarding their obligations under the order. Consequently, the stay application is admitted for further proceedings.
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