2013 (11) TMI 48 - AT - Service Tax

Waiver of pre deposit - evidence of amount deposited earlier - Held that - applicant is a public sector undertaking of West Bengal Government and the Ld. Advocate appearing for the applicant categorically claims that they have already paid an amount of Rs.5.50 crores and submitted a detailed summary of the payments enclosing payment challans. We do not find any reason in not accepting the said submission being borne out on records unless contrary evidence is placed before us by the Department. In these circumstances, we are of the view that deposit of Rs.5.50 crores could be considered as sufficient for the purpose of hearing the appeal. Consequently, the pre-deposit of balance dues adjudged is waived and its recovery stayed during pendency of the appeal. However, we make it clear that in the event the Department finds that the deposits claimed to have been made is found to be incorrect, they are at liberty to approach the Tribunal for appropriate order - stay granted.

Summary

Issues:
Application for waiver of pre-deposit of service tax and Cenvat credit.

Analysis:
The judgment pertains to an application seeking waiver of pre-deposit of service tax amounting to Rs.6.04 crores and Cenvat credit of Rs.9.65 Lakhs imposed on the applicant, a public sector undertaking of the Government of West Bengal. The advocate for the applicant stated that they have already paid Rs.5.50 crores against the liability, although the impugned order only acknowledged Rs.1.44 crores. The advocate provided challans and a summary of payment details as evidence. The Revenue's representative argued that only Rs.1.42 crores had been paid as per the impugned order, questioning the total payment of Rs.5.50 crores. After hearing both sides and examining the records, the tribunal noted the applicant's claim of paying Rs.5.50 crores, supported by detailed payment summaries and challans. The tribunal found no reason to reject this claim unless contrary evidence was presented by the Revenue. Consequently, the tribunal considered the deposit of Rs.5.50 crores as sufficient for the appeal's hearing, waiving the pre-deposit of the balance dues and staying its recovery during the appeal's pendency. However, the tribunal clarified that if the Revenue discovered any inaccuracies in the claimed deposits, they could approach the tribunal for appropriate action.

This judgment showcases the importance of providing concrete evidence to support claims in waiver applications concerning tax liabilities. It underscores the significance of thorough documentation, such as payment challans and summaries, to substantiate payment assertions. Moreover, the tribunal's decision emphasizes the need for transparency and accuracy in financial transactions, especially in cases involving substantial amounts like service tax and Cenvat credit. The tribunal's approach of balancing the interests of the applicant and the Revenue by allowing the waiver while reserving the right to review the deposits in case of discrepancies demonstrates a fair and cautious adjudication process.