2014 (2) TMI 243 - AT - Service Tax

Waiver of pre-deposit - Stay of recovery of service tax - Denial of benefit of exemption of Notification No. 12/2003-ST - Denial of benefit on the ground that the goods/ material in issue were consumed in the taxable service of repair of transformers, defined under Section 65 (64) read with Section 65(105)(zzg) of the Finance Act, 1994 - Held that - Following decision of Aggarwal Colour Advance Photo System vs. CCE, Bhopal 2011 (8) TMI 291 - CESTAT, NEW DELHI (LB) - Since in earlier circumstances absolute waiver has already been granted - Therefore, Stay granted.

Summary

Issues:
1. Waiver of pre-deposit and stay of recovery of service tax, interest, and penalties.
2. Denial of claim for exemption based on Notification No. 12/2003-ST.
3. Interpretation of the taxable service of repair of transformers under relevant sections of the Finance Act, 1994.
4. Comparison with a previous Tribunal decision in Samtech Industries.
5. Argument by the Revenue regarding an arguable case based on a previous decision.
6. Granting of absolute waiver of pre-deposit and unconditional stay by the Tribunal.

Analysis:

1. The main issue in this case was the waiver of pre-deposit and stay of recovery of service tax, interest, and penalties as assessed by the adjudication order. The appellant sought relief based on the denial of exemption under Notification No. 12/2003-ST.

2. The denial of claim for exemption was based on the condition in the notification that required documentary proof specifically indicating the value of goods and material sold by a service provider to a recipient of service. The goods/material in question were consumed in the taxable service of repair of transformers, as defined under Section 65(64) read with Section 65(105)(zzg) of the Finance Act, 1994.

3. The Tribunal referred to a previous decision in Samtech Industries where unconditional stay was granted in similar circumstances. This comparison was crucial in determining the relief to be granted in the current case.

4. The Revenue argued that they had an arguable case to sustain the adjudication order, citing a decision in Aggarwal Colour Advance Photo System vs. CCE, Bhopal. However, considering the previous decision by the Tribunal and the circumstances of the case, the Tribunal granted waiver of pre-deposit and stay of all further proceedings pending the disposal of the appeal.

5. Ultimately, the Tribunal disposed of the stay application by granting the waiver of pre-deposit and stay of all further proceedings pursuant to the impugned order in original, in line with the decision in Samtech Industries and the specific circumstances of the case.

This detailed analysis highlights the key legal issues, interpretations of relevant provisions, comparison with previous decisions, arguments presented by both parties, and the final decision of the Tribunal in granting the requested relief.