2015 (8) TMI 106 - AT - Service Tax

Waiver of pre deposit - small service provider - wilful misstatement/suppression of facts - Benefit of Notification No. 12/2003-ST dated 26.2.2003 - Held that - It is seen that the appellants mentioned at Sr. Nos. 1, 5 and 6 involving total amount of service tax in the range more than ₹ 10 lakhs each have paid more than 85% of the amount of service tax demanded in the respective show cause notice - In the remaining cases except for Sr. No. 2 and 3 of the table) the amount of service tax involved is relatively small and there too substantial amounts vis-a-vis amounts demanded in the show cause notices have been paid. In the case of Shri A.N. Singh, no tax has been paid because the appellants claimed the benefit of SSI exemption on the ground that the value of service rendered was less than the exemption limit if the value of the goods supplied was deducted. The demand at Sr. No. 2 is less than ₹ 5 lakhs out of which ₹ 55,858/- has been paid. - in the totality of the circumstances including the appellants plea that service was rendered to a public sector unit and there was no question of any suppression/mis-statement on their part, we allow waiver of pre-deposit of the remaining adjudicated liabilities staying recovery of the same during pendency of the appeals. - Stay granted.

Summary

Issues:
Stay Applications against service tax demands with interest and penalties confirmed by orders-in-appeal.

Analysis:
The appellants filed Stay Applications along with appeals challenging orders-in-appeal confirming service tax demands, interest, and penalties. The appellants provided repair and maintenance services to M/s Anpara Thermal Power Station and paid service tax under maintenance and repair service. The Revenue alleged that the appellants did not pay service tax on the entire amount received from M/s Anpara Power Corporation. The appellants argued that they were providing services involving the supply of goods, the value of which was not includible in the assessable value for service tax under Notification No. 12/2003-ST dated 26.2.2003. They claimed no wilful misstatement/suppression as the services were rendered to a public sector undertaking.

The Revenue contended that the appellants did not specify the exact amount of goods supplied eligible for the benefit of the notification. They argued that documentary evidence was necessary to establish eligibility for the notification's benefit. Upon review, it was noted that appellants at Sr. Nos. 1, 5, and 6, with service tax amounts exceeding Rs. 10 lakhs each, had paid over 85% of the demanded tax. For other cases, significant amounts had been paid compared to the demand. Notably, in the case of Shri A.N. Singh, no tax was paid as the appellants claimed the Small Scale Industries (SSI) exemption due to the value of services rendered being below the exemption limit after deducting the value of goods supplied. The demand at Sr. No. 2 was less than Rs. 5 lakhs, of which Rs. 55,858/- had been paid.

Considering the circumstances, including the appellants' assertion of providing services to a public sector unit without any suppression or misstatement, the tribunal granted a waiver of pre-deposit for the remaining adjudicated liabilities. The recovery of the outstanding amounts was stayed during the pendency of the appeals.