2012 (11) TMI 1185 - AT - Service Tax

CESTAT Ahmedabad: Waiver Granted for Service Tax Pre-deposit

The Appellate Tribunal CESTAT Ahmedabad granted the application for waiver of pre-deposit of the remaining disputed Service Tax liability. The appellant ... Waiver of pre-deposit - stay of recovery - deposit as sufficient security - service tax leviability - Business Auxiliary ServiceWaiver of pre-deposit - deposit as sufficient security - stay of recovery - service tax leviability - Whether the balance pre-deposit may be waived and recovery stayed where the appellant has deposited the entire service tax liability and interest and disputes the leviability of service tax. - HELD THAT: - The Tribunal noted that the appellant has already deposited the entire service tax liability and interest and is contesting the question of leviability of service tax (classified as Business Auxiliary Service) on merits. Having regard to the deposit made by the appellant and the pendency of the substantive dispute on levy, the Tribunal treated the amount deposited as adequate security to proceed with the appeal. In these circumstances the Tribunal exercised its appellate discretion to relieve the appellant from making any further pre-deposit and to stay recovery of the remaining amounts until the appeal is disposed of. [Paras 3, 4]Application for waiver of balance pre-deposit allowed and recovery stayed until disposal of the appeal.Final Conclusion: The Tribunal allowed the waiver of the balance pre-deposit and stayed recovery, holding that the full deposit of service tax and interest by the appellant constituted sufficient security pending adjudication of the dispute on levy. The Appellate Tribunal CESTAT Ahmedabad allowed the application for waiver of pre-deposit of balance amounts involved in a case where Service Tax liability was disputed. The appellant had already deposited the entire amount of Service Tax liability and interest, and the recovery was stayed until the appeal was disposed of.