2014 (2) TMI 203 - AT - Service Tax

Waiver of pre-deposit of service tax - Penalty u/s 78 - security agency services - Held that - despite security services, they, rendered other services also, which were not taxable during the relevant period and corresponding invoices also support the said facts. We also find that the applicants have deposited an amount of Rs.9,60,814/- against the confirmed demand. In these circumstances, the applicants are able to make out a prima-facie case for waiver of dues adjudged, accordingly, predeposit of all dues adjudged is waived and its recovery stayed during pendency of the appeal - Stay granted.

Summary

Issues: Application for waiver of pre-deposit of service tax and penalty under Section 78 of the Finance Act, 1994.

In this case, the appellant applied for the waiver of pre-deposit of service tax amounting to Rs.65,24,118/- and penalty of Rs.1.30 Crores imposed under Section 78 of the Finance Act, 1994, along with other penalties. The appellant, engaged in security services and man-power supply services, argued that the Department issued a demand notice based on the gross taxable value shown in the Balance Sheets of the financial years 2001-2002 and 2005-2006 compared to the value in ST-3 Returns. The appellant contended that the Balance Sheets reflected both taxable and non-taxable services. Supporting documents, like a sample work order and invoice, were presented to demonstrate the breakdown of services rendered, including security services. The appellant had already deposited Rs.10,78,194/- against the confirmed demand. The Department, however, raised concerns about the lack of serially numbered invoices affecting the acceptability of the service breakdown. Upon review, it was found that the appellant had deposited Rs.9,60,814/- during the relevant period. The Tribunal observed that the issue revolved around the service tax liability for services provided from 2001-2002 to 2005-2006, specifically in the security agency services category. The Tribunal noted that the appellant had provided both taxable and non-taxable services, as evidenced by the work order and invoices. Considering the prima facie case made by the appellant and the amount already deposited, the Tribunal granted the waiver of dues adjudged, stayed the recovery during the appeal's pendency, and allowed the stay petition.

This judgment addresses the application for waiver of pre-deposit of service tax and penalties under the Finance Act, 1994. The issues involved the appellant's contention that the Department's demand notice was based on the Balance Sheets' values, reflecting both taxable and non-taxable services, compared to ST-3 Returns. The appellant, engaged in security services, presented a sample work order and invoice to demonstrate the breakdown of services rendered, including security services. The Department raised concerns about the lack of serially numbered invoices affecting the service breakdown's acceptability. The Tribunal found that the appellant had deposited Rs.9,60,814/- during the relevant period. The Tribunal concluded that the appellant had provided both taxable and non-taxable services, as evidenced by the work order and invoices. Considering the prima facie case made by the appellant and the amount already deposited, the Tribunal granted the waiver of dues adjudged, stayed the recovery during the appeal's pendency, and allowed the stay petition.