2015 (1) TMI 1003 - AT - Service Tax

Waiver of pre-deposit of service tax - manpower recruitment and supply service - Held that - applicant had not appeared before the adjudicating authority nor produced any records as required by the adjudicating authority to show that the applicants are undertaking the job work and not supplying manpower to the principal. Even the applicants had not produced the copy of the work order. Similarly the applicant had not appeared before the Commissioner (Appeals) also. Now before us they produced the copy of the work order to show that the applicants are undertaking the job work and not providing any manpower supply service. In these circumstances, we find the matter requires reconsideration by the adjudicating authority afresh - Matter remanded back - Decided in favour of assessee.

Summary

Issues: Application for waiver of pre-deposit of service tax, nature of services provided - job work or manpower supply.

Analysis:
1. The applicant sought waiver of pre-deposit of service tax, interest, and penalty amounting to Rs. 14,18,682, contending that they perform job work of wheel assembly for their principal and not manpower supply. They produced a work order to support their claim.

2. The Revenue argued that the applicant failed to provide necessary documents and evidence during the adjudication process, both at the initial stage and before the Commissioner (Appeals), which led to the confirmation of the demand. The applicant did not cooperate with the authorities and did not produce the work order until the appeal stage.

3. The Tribunal noted that the applicant did not appear before the adjudicating authority or the Commissioner (Appeals) earlier, resulting in a lack of evidence to support their claim of performing job work instead of providing manpower supply service. However, upon producing the work order before the Tribunal, it was deemed necessary to reconsider the matter afresh.

4. The Tribunal directed the applicant to deposit Rs. 5,000 as a cost for not cooperating with the authorities. Subject to this payment, the impugned order was set aside, and the case was remanded to the adjudicating authority for a fresh decision. The applicant was instructed to appear before the authority with proof of the cost deposit and supporting documents.

This detailed analysis of the judgment highlights the issues surrounding the application for waiver of pre-deposit of service tax and the nature of services provided by the applicant, emphasizing the importance of cooperation and evidence submission during the adjudication process.