2013 (11) TMI 352 - AT - Service Tax

Import of services - reverse charnge - services of Management Consultancy and Business Auxiliary Services received by them from abroad. - Waiver of pre deposit - Held that - amount deposited by the appellant as enough deposit to hear and dispose the appeals. Accordingly, the applications for the waiver of pre-deposit of the balance amounts involved are allowed and recovery thereof stayed till the disposal of appeals - stay granted.

Summary

Issues:
Waiver of pre-deposit of service tax, interest, and penalties under the Finance Act, 1994.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad involved the consideration of stay petitions seeking the waiver of pre-deposit of a substantial amount confirmed as service tax, interest, and penalties under the Finance Act, 1994. The appellant, represented by a Chartered Accountant, argued that the service tax liability and penalties were imposed due to non-discharge of service tax under the reverse charge mechanism for Management Consultancy and Business Auxiliary Services received from abroad. The appellant claimed to have paid the entire service tax liability during the proceedings and contested the issue on its merits. The departmental representative acknowledged the appellant's full payment of the service tax liability.

Upon reviewing the records, the Tribunal noted that the appellant had indeed paid the entire service tax liability and was actively contesting the issue on its merits. Considering these factors, the Tribunal deemed the amount deposited by the appellant to be sufficient for hearing and disposing of the appeals. Consequently, the Tribunal allowed the applications for the waiver of pre-deposit of the remaining amounts in question and stayed the recovery until the appeals were finally disposed of. The judgment was pronounced in court, signifying the resolution of the matter by the Tribunal.