CESTAT Chennai: Predeposit of Rs.15,000 for Service Tax Appeal The Appellate Tribunal CESTAT, CHENNAI, directed the assessees to make a predeposit of Rs.15,000 within four weeks, with the balance duty and penalty ...
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CESTAT Chennai: Predeposit of Rs.15,000 for Service Tax Appeal
The Appellate Tribunal CESTAT, CHENNAI, directed the assessees to make a predeposit of Rs.15,000 within four weeks, with the balance duty and penalty waived upon this deposit, and recovery stayed pending the appeal. The Tribunal noted a prima facie case for waiver of service tax and penalty for outdoor catering service based on a previous court decision but required predeposit for other services like security and rent-a-cab related to business activities. Failure to comply would result in the vacation of stay and dismissal of the appeal without notice. Compliance reporting was mandated by a specific date.
Issues: Waiver of predeposit of service tax and penalty on input services including outdoor catering, security service, rent-a-cab service, and manpower supply agency services.
The judgment by the Appellate Tribunal CESTAT, CHENNAI, involved the issue of waiver of predeposit of service tax and penalty amounting to Rs.95,428/- and Rs.2,000/- respectively. The demand was confirmed due to the disallowance of input service tax credit on various services, namely outdoor catering service, security service for cash withdrawal, rent-a-cab service, and manpower supply agency services for specific activities. The Tribunal noted that a prima facie case was established by the assessees for the outdoor catering service based on the decision of the Hon'ble Bombay High Court in CCE Nagpur Vs Ultratech Cement Ltd. However, for the security service and rent-a-cab service, a nexus with the business activity of the assessees was recognized, as the security service was utilized for cash withdrawal and the rent-a-cab service was for employee transportation. On the other hand, for the manpower supply agency services related to gardening, cleaning, etc., the assessees failed to establish a prima facie case for waiver. The Tribunal directed a predeposit of Rs.15,000/- within four weeks, with the balance duty and penalty waived upon this deposit, and recovery stayed pending the appeal. Non-compliance would lead to the vacation of stay and dismissal of the appeal without prior notice. Compliance reporting was set for a specific date, emphasizing the importance of adhering to the Tribunal's directions.
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