2013 (10) TMI 737 - AT - Service Tax

Demand - SSI exemption - Held that - there is a need for examination of liability in terms of SSI exemption notification. The appellant has not at all registered and they were not paying service tax. When they were not registered and not paying service tax, the question of proving that they have not availed CENVAT credit in terms of para 2 of the notification may not arise. Further the claim about bona fide belief also is to be considered. At this stage, we feel that the amount deposited by the appellant is sufficient for the purpose of waiver of predeposit of balance dues. - stay granted.

Summary

The Appellate Tribunal CESTAT Bangalore ruled in favor of the appellant, waiving the predeposit of balance dues during the pendency of the appeal and stay against recovery. The appellant had deposited Rs.39,691 out of a total service tax demand of Rs.89,184, claiming SSI exemption notification, which was denied. The Tribunal found a need to examine the liability under the SSI exemption notification, considering the appellant's non-registration and non-payment of service tax.