2014 (5) TMI 340 - AT - Service Tax

Waiver of pre deposit - Security Agency Service and Manpower Recruitment and Supply Service - Held that - tax liability in principle is not in dispute and the issue involved in the case pertains to quantification of Service Tax to be paid by the appellant. According to the appellant, the liability is only to the extent of Rs. 63,83,600/-. However, the appellant in a statement dated 24-9-2009 clearly admitted the entire tax liability amounting to over Rs. 1.24 crores. The adjudicating authority found that this admission of tax liability was never retracted. These findings of the adjudicating authority, we note, have not been challenged in the appeal. In this view of the matter, the appellant cannot claim waiver of pre-deposit and stay of recovery in respect of the demand of over Rs. 1.24 crores less the appropriated amount of Rs. 25 lakhs - Conditional stay granted.

Summary

Issues:
1. Confirmation of demand under 'Security Agency Service' and 'Manpower Recruitment and Supply Service'.
2. Quantification of Service Tax liability.
3. Challenge of tax liability admission.
4. Claim for waiver of pre-deposit and stay of recovery.
5. Financial hardship plea.
6. Consideration of circumstances affecting financial status.
7. Opposition to the application by the Deputy Commissioner.
8. Direction for pre-deposit and compliance.

Analysis:
1. The judgment confirms the demands of Rs. 93,49,664/- and Rs. 30,54,893/- against the appellant for 'Security Agency Service' and 'Manpower Recruitment and Supply Service' respectively. The total demand amounts to Rs. 1,24,04,557/-, with an appropriation of Rs. 24,58,480/-. The issue revolves around quantifying the Service Tax liability to be paid by the appellant.

2. The appellant claimed the liability to be Rs. 63,83,600/-, contrasting with an admission of over Rs. 1.24 crores in a statement dated 24-9-2009, which was never retracted. The adjudicating authority's findings, unchallenged in the appeal, support the tax liability admission. Consequently, the appellant's request for waiver of pre-deposit and stay of recovery for the demand exceeding Rs. 1.24 crores, less the appropriated amount, is not sustainable.

3. Despite no plea of financial hardships, the appellant's counsel presented circumstances affecting the financial status, duly considered by the Tribunal. The Deputy Commissioner opposed the application based on the Commissioner's findings.

4. After considering submissions from both sides, the Tribunal directed the appellant to pre-deposit Rs. 75 lakhs within 8 weeks and report compliance to the Assistant Registrar by a specified date. Upon compliance, there would be a waiver of pre-deposit and stay of recovery for penalties, service tax, and interest balance.

This detailed analysis outlines the issues addressed in the judgment, focusing on the quantification of tax liability, admission challenges, waiver requests, financial circumstances, opposition by the Deputy Commissioner, and the Tribunal's directive for pre-deposit and compliance.