2014 (1) TMI 1149 - AT - Service Tax

Waiver of pre deposit - Penalty u/s 78 - Held that - The Applicant during the course of investigation, had paid an amount of Rs.9,36,732.00 and the said amount was deducted from the total demanded amount by the ld. Commissioner in the impugned Order. In these circumstances, we direct the Applicant to deposit 25% of the Service Tax amount confirmed i.e.Rs.48,19,950.00, within a period of 8 weeks and report compliance on 27.05.2013. On compliance, the balance amount of the dues adjudged would stand waived and recovery of the same stayed during pendency of the Appeal.

Summary

Issues: Application for waiver of predeposit of Service Tax

Analysis:
The judgment pertains to an Application for waiver of predeposit of Service Tax amounting to Rs.48,19,950.00 along with interest and penalties under various sections of the Finance Act, 1994. Despite the absence of the Applicant during the proceedings, the Ld. AR presented the case, highlighting that the Applicant had failed to produce essential documents like work orders and contracts to determine the correct taxable value of services provided to M/s. Durgapur Steel Plant. The Commissioner, based on the evidences submitted, arrived at a liability amount. The Applicant had already paid a partial amount during the investigation, which was deducted from the total demanded sum. In light of the circumstances, the Tribunal directed the Applicant to deposit 25% of the confirmed Service Tax amount within 8 weeks. Upon compliance, the balance amount would be waived, and recovery stayed during the pendency of the Appeal. However, failure to deposit the specified amount would lead to the dismissal of the Appeal without further notice to the Applicant.

This judgment underscores the importance of producing necessary documents and evidences to determine the correct taxable value of services for the assessment of Service Tax liability. It also highlights the Tribunal's discretion in granting waivers of predeposit amounts based on compliance with specified directives. The consequences of non-compliance, leading to the dismissal of the Appeal, serve as a cautionary reminder for taxpayers to adhere to regulatory requirements and procedural obligations in tax matters. The decision reflects a balanced approach by the Tribunal in ensuring fairness in tax assessments while upholding the principles of compliance and due process.