2014 (2) TMI 755 - AT - Service Tax

Waiver of pre deposit - Service Tax liability - Held that - Appellant has provided the services on which the Service Tax liability has not been discharged - Prima facie case not in favour of assessee - Conditional stay granted.

Summary

Issues involved: Stay petition for waiver of pre-deposit of Service Tax, interest, and penalties under Sections 76, 77, and 78 of Finance Act, 1994.

Analysis:

1. Service Tax Liability Issue:
The case involves the Service Tax liability on the appellant for services provided to various individuals during the period from 2005-2006 to 2008-2009. Both lower authorities concluded that the appellant failed to discharge the Service Tax liability for the services rendered. The adjudicating authority examined the defences raised by the appellant's consultant in light of the findings. The Tribunal found that the appellant did not establish a strong case for complete waiver of the amounts due.

2. Financial Hardship Consideration:
The appellant's consultant argued that the appellant, being a proprietor with limited income, faced financial constraints in depositing the entire amount. The consultant mentioned that the appellant had already deposited Rs. 80,000 during the proceedings and provided evidence in the form of a challan. Taking into account the financial difficulties raised by the appellant's counsel and the partial deposit made, the Tribunal directed the appellant to deposit a further amount of Rs. 8 lakhs within four months. The compliance was to be reported to the Deputy Registrar, CESTAT, Ahmedabad, by a specified date. Upon confirmation of compliance, the application for waiver of the remaining balance was allowed, and recovery was stayed until the appeal's disposal.

This detailed analysis of the judgment highlights the key issues of Service Tax liability, financial hardship considerations, and the Tribunal's decision regarding the waiver of pre-deposit and stay of recovery.