2015 (3) TMI 1007 - AT - Service Tax

Waiver of pre deposit - Benefit of Notification No.45/2010 - exemption in respect of services provided to transmission and distribution companies - Held that - Appellant was engaged in providing the activity of maintenance or repair of distribution transformers. He submits that appellant is eligible for the benefit of Notification No.45/2010 which provides exemption in respect of services provided to transmission and distribution companies - appellant may be eligible for the benefit of this Notification. However, the amount payable after extending cum-tax benefit is ₹ 1,76,012/- after 1.7.2010 and even appellant is not disputing the same. In our opinion, this amount is required to be deposited. - Partial Stay granted.

Summary

Issues:
1. Condonation of delay in filing the appeal.
2. Eligibility for exemption under Notification No.45/2010 for service tax demand.
3. Direction for depositing the service tax amount.

Condonation of Delay:
The appellant indicated the date of receipt of the order-in-appeal as 27.5.2013, whereas the impugned order was dated 30.11.2012. The Registry noted the discrepancy and a condonation of delay application was filed. The counsel argued that there was no delay in filing the appeal as the order-in-appeal was dispatched on 19.12.2012. Utilizing online tracking, it was found that the order-in-appeal's delivery status was "consignment not found," supporting the appellant's claim. The Tribunal accepted this explanation, ruling that no condonation of delay was necessary despite allowing the application.

Exemption under Notification No.45/2010:
The service tax demand for the period from March 2006 to March 2010, amounting to Rs. 8,49,395/-, was confirmed, with interest and penalty imposed. The appellant, engaged in maintenance or repair of distribution transformers, claimed eligibility for exemption under Notification No.45/2010, which exempts services provided to transmission and distribution companies. The Tribunal, after reviewing the records and nature of services, agreed that the appellant might qualify for this exemption. However, the payable amount after extending cum-tax benefit was Rs. 1,76,012/- post 1.7.2010, which the appellant did not dispute. The Tribunal directed the appellant to deposit the entire service tax amount within eight weeks and report compliance by 12.2.2015. Upon compliance, the pre-deposit of balance dues was waived, and a stay against recovery was granted.

This judgment highlights the Tribunal's consideration of the delay in filing the appeal, the eligibility of the appellant for exemption under Notification No.45/2010, and the direction for depositing the service tax amount. The Tribunal accepted the explanation regarding the delay, granted the application for condonation of delay, and directed the appellant to deposit the service tax amount while acknowledging the possibility of exemption under the said notification.