2014 (3) TMI 408 - AT - Service Tax

Waiver of pre-deposit of service tax liability - Invocation of extended period of limitation - Held that - entire issue needs to be gone into detail as to the retrospective amendment on the valuation of the same done by the legislature in May 2010 in respect of renting of immovable property; whether the balance sheet income shown by the appellant only has to be considered for raising a demand on the appellant is an issue which may take considerable time of the Bench for coming to a conclusion - Conditional stay granted.

Summary

Issues:
1. Stay petition for waiver of pre-deposit of service tax liability confirmed by adjudicating authority under various categories of services provided by the appellant.

Analysis:
The judgment pertains to a stay petition filed by the appellant seeking a waiver of pre-deposit of service tax liability confirmed by the adjudicating authority under different service categories. The adjudicating authority had confirmed demands under categories such as Renting out of Immovable Property Service, Computerised Reservation Services, Guest House Services, Additional Commission, Air-line and Insurance Company, Passport and Visa Services, Management, Maintenance and Repair Services, Rent-a-Cab, and Outdoor Catering Services. The demands were confirmed by invoking the extended period of limitation. The Tribunal acknowledged the need for a detailed analysis of the retrospective amendment on the valuation of immovable property, as well as the issue of considering only the balance sheet income of the appellant for raising demands. Due to the complexity of the issues, the Tribunal decided that a detailed examination was necessary, which could only be done at the final disposal of the appeal.

The Tribunal, in order to proceed with the appeal, directed the appellant to deposit an additional amount of Rs. 30,00,000 within eight weeks, in addition to the amount already deposited. The appellant was required to report compliance by a specified date, after which the application for waiver of pre-deposit of the balance amounts involved was allowed, and recovery was stayed until the appeal's final disposal. The decision aimed to ensure that the appellant fulfilled certain conditions to facilitate the hearing and disposal of the appeal effectively. The judgment highlighted the importance of a thorough analysis of the legal provisions and defenses presented by the appellant before reaching a final decision on the matter.