9911796707
TMI Blog2008 (2) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... Mrs. Sudha Koka, SDR, for the Respondent. [Order per: S. L. Peeran, Member (J)]. - 1. The appellants are required to pre-deposit service tax amount of Rs. 3,03,77,607/- and penalty of 4,00,00,000/- under Section 78 of the Finance Act and Rs. 200/- per day under Section 76 and Rs. 1000/- under Section 77 of the Act. They have paid an amount of Rs. 54,18,230/- towards the service tax and an amount of P.s. 5,41,365/- towards the interest. This is second round of litigation. The appellants claimed 70% deduction in respect of spares and parts in terms of Annual Maintenance Contracts (AMC). The Tribunal remanded the matter to examine the invoices produced by the appellants with regard to the cost of spares and parts. The Commissioner in P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... STAT-MAD] The learned Counsel submits that the above noted judgments clearly laid down that when the assessee has paid the service tax on the parts and spares then its value is deductible from the service contract. It was the submission of the appellants that they have paid the service tax on the commission received by them in respect of the AMC contracts. He submits that the confirmation of demand is totally unjustified in the light of the Notification and the judgments cited supra. 3. The learned SDR seriously opposed the prayers and submits that the burden to discharge the liability lies on the assessee as they are seeking the benefit of Notification. She submits that mere production of invoices is not sufficient but they have to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation of their claim. In terms of the Notification and the judgments cited supra, the spares and parts are not required to be taken into consideration while arriving at the service tax liability. The appellants have paid service tax on the commission received by them in terms of AMC contracts. Prima facie, the impugned order is not sustainable. The appellants are entitled to seek waiver of pre-deposit of entire amount of duty and penalty. The stay application is allowed by granting waiver of pre-deposit of the balance disputed amount and staying its recovery till the disposal of the appeal. As revenue involved in the matter is high, the appeal is listed for final hearing on 5-6-2008. (Pronounced and dictated in the open court) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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