2014 (6) TMI 767 - AT - Service Tax

Waiver of pre deposit - Demand of service tax - Held that - appellant had deposited an amount as has been claimed and appropriated by the Adjudicating Authority. On perusal of records, we find that the issue is an arguable one and needs to be gone into details as to whether the appellant is liable to tax on receiving/providing various services during the material period. Since the appellant is contesting the issue on merits, we consider the amount deposited by the appellant is enough deposit to hear and dispose the appeal on merits - Stay granted.

Summary

Issues:
Service tax liability on various services provided and received during 2007-2008 to June 2012.

Analysis:
The appellant raised a stay petition concerning the service tax liability on services provided and received between 2007-2008 to June 2012. The Adjudicating Authority had adjusted a significant portion of the demanded amount from the total deposit made during the investigation. The appellant contested the issue on its merits, emphasizing the dispute over the tax liability. On the other hand, the Departmental Representative argued that the appellant had already deposited a substantial amount, which was acknowledged by the Adjudicating Authority. The Tribunal acknowledged the arguable nature of the issue and the necessity to delve into the details of the appellant's tax liability concerning the services provided and received during the specified period. Given the appellant's contestation on the merits, the Tribunal deemed the deposited amount sufficient to proceed with the appeal's hearing and resolution. Consequently, the Tribunal allowed the application for waiver of pre-deposit of the remaining balance amounts and stayed the recovery process until the appeal's final disposal. The decision was dictated and pronounced in the Court by Mr. M.V. Ravindran.

This judgment revolves around the appellant's challenge regarding the service tax liability on various services provided and received within a specific timeframe. The Tribunal recognized the need for a detailed examination of whether the appellant was indeed liable for tax concerning the services exchanged during the material period. The Tribunal's decision to allow the waiver of pre-deposit for the remaining balance amounts and stay the recovery process until the appeal's disposal indicates a fair consideration of the appellant's contestation on the merits. The judgment reflects a balanced approach by ensuring that the appellant has the opportunity to present arguments on the tax liability issue while also addressing the necessity for a thorough examination of the details surrounding the services in question.