2014 (1) TMI 1101 - AT - Service Tax

Demand of service tax - Penalty u/s 78 - Held that - Appellant does not deny its liability - service is a taxable service chargeable to tax with reference to its value then such value shall in a case where the provision of service is for a consideration in money, be the gross amount charged by the service provider for such service provided or to be provided by him. As the petitioner/appellant has charged his customers for the service provided during the relevant period in issue, prima facie, the liability to remit service tax does not appear to be contingent on receipt of the amount by the service provider - prima facie, no case is made out for grant of waiver of pre-deposit - Stay denied.

Summary

The Appellate Tribunal CESTAT NEW DELHI upheld a demand of Rs.22,29,549/- and penalty under Section 78 of the Act. The appellant's new plea that the amount was not received during the relevant period was rejected. The liability to remit service tax is not contingent on receipt of the amount by the service provider. The stay application was rejected, and time for deposit of the adjudicated amount was granted for four weeks. Compliance was listed for 5.6.2013.