Tribunal orders deposit for service tax compliance, waiver upon payment, risk of appeal dismissal

The Tribunal directed the applicants to deposit Rs. 1,00,000 towards service tax within eight weeks, with the balance amount and penalties to be waived upon compliance. Non-compliance would result in the vacation of stay and dismissal of the appeal without notice. The definition of outdoor catering during the disputed period did not align with the services provided, leading to the waiver decision based on lack of suppression or misstatement for tax evasion.

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Issues involved: Application for waiver of pre-deposit of service tax and penalties under various sections of the Finance Act, 1994 for outdoor catering services rendered during a specific period.

Summary:
1. The applicants sought waiver of pre-deposit of service tax and penalties u/s 76, 77, and 78 of the Finance Act, 1994, for outdoor catering services provided from 10-9-2004 to 31-3-2005. The definition of outdoor catering at that time did not align with the services provided by the applicants, who operated at leased premises. The argument of time-bar was raised due to a show-cause notice issued on 22-11-2006, with the appellants claiming a genuine belief based on a CBEC Circular issued on 27-7-2005 post-amendment of the definition.

2. The learned SDR opposed complete waiver, asserting that the demand was not time-barred as the services fell within the definition of outdoor catering even during the disputed period. While the applicants failed to establish a prima facie case on merits, it was acknowledged that no suppression or misstatement to evade tax payment was evident. An offer to deposit Rs. 1,00,000 towards service tax was accepted, with directions for pre-deposit within eight weeks. Upon compliance, the balance amount of service tax and penalties would be waived, and recovery stayed pending appeal.

3. The Tribunal directed compliance to be reported by 22-5-2009, emphasizing the consequences of non-compliance leading to the vacation of stay and dismissal of the appeal without prior notice.

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